|
Solo 401(k) Plan
Solo 401(k) Plan
-- Benefits
The Revzon
Consulting Group Solo 401(k) Plan allows individuals to invest in
all permitted investments including real estate, S corporations, and
many other asset types such as traded stocks and mutual funds. You
may be able to contribute as much as $46,000 ($51,000 if you will be
at least age 50) beginning in 2008, and more in following years.
What’s new
about the Solo 401(k) Plan? In general, the main cause for
excitement is the Solo 401(k) Plan’s new “Roth”
contribution component. While you may still elect to make your entire
contribution on a pre-tax, deductible basis, you may now choose
instead to have up to $15,500 of your contribution ($20,500 if you
will be at least age 50) in 2008 made as “Roth 401(k)”
deferrals. Roth 401(k) deferrals (like contributions into a Roth IRA)
are after-tax contributions that, like other deferrals and
contributions, can generate tax-deferred earnings. The big difference
is that “qualifying distributions” on Roth 401(k) deferrals
and their earnings will not be taxed when paid out. Other major
advantages to the Solo 401(k) Plan are: Unlike with Roth IRAs, there
are no income limitations related to the ability to contribute to the
Solo 401(k) Plan’s Roth (after-tax) deferral component. Also
unlike IRAs, you can:
Income from
leveraged real estate investments may not be subject to UDFI tax.
Your brokerage
firm or bank may be the custodian of your Solo 401(k) Plan and invest
contributions as you direct; we work with any financial firm. The
Revzon Consulting Group will provide you with a complete plan
document required by the tax laws and necessary plan adoption,
enrollment, deferral election, and beneficiary designation forms. The
Revzon Consulting Group will also provide you with updates to the
plan document as necessary to keep it in compliance with tax law
changes in addition to annual plan administration and tax reporting.
Instructions for
Opening a Solo 401(k) Plan
1. Read the
Benefits Information (Above)
2. Read the Government
Rules Sheet to determine if you are eligible for a
Solo 401(k) Plan
3. If you are
eligible, then print out the New
Solo 401(k) Plan Set-up Form and complete. Feel free
to call us toll-free at 877-254-7085 if you have any questions while
completing the set-up form.
4. The completed
New Solo 401(k) Plan Set-up Form along with a check for the
appropriate fees (see below, but for example a one participant plan
would be $100 one-time installation fee and $265 for the first
participant annual service fee for a total of $365) should be mailed to:
5. Once The Revzon
Consulting Group has received the completed New Solo 401(k) Plan
Set-up Form along with a check for the fees we will begin to process
your plan. It will take approximately two (2) weeks to set up the
plan and produce the plan documents along with the ancillary forms.
6. When you
receive the plan documentation package it will contain detailed
instructions as to which forms need to be signed, which ones need to
be returned to us, which ones you should keep, and which ones need to
be given to employees.
7. After signing
and returning the appropriate documents (step 6) the plan is
officially established. We will work with your financial services
firm regarding the asset side of the plan to ensure they have all of
the plan assets.
8. Our address is
listed above and the remaining contact information is:
Solo 401(k) Plan
-- Fees
Payment Responsibility
Installation
and Plan Set-Up Fee
Annual Service Fee
$265 for the first
participant, plus $150 for each additional participant
This is an annual
fee payable upon submitting set-up form and each anniversary of
the Set-up Date. This fee will be invoiced to you unless you
want the trust to pay it.
Loan Fee
Distribution Fee
Plan Admendment
Fee
$75 per plan
Applies only if
using our prototype plan. This fee will be charged for both
government required changes as well as sponsor requested changes.
|