Solo IRAs--Four Options For Your Consideration

It is never too early or too late to consider all options when planning for your future with either solo IRAs, 401ks, Roth IRAs or self directed IRAs. Maybe you need to save for college fees, buy a home and of course, save for a comfortable retirement. Whatever your situation is, whether you are self employed or an employee there is something in this article for you.

With today's economic climate it is a good idea to look for a broker that diversifies your funds. Rather than just investing in stocks and bonds, real estate is now gaining popularity. Also, a broker that offers all types of accounts is advisable.

Option #1

Solo IRAs are useful if you are self employed and your contributions are tax deductible. The paperwork is straight forward and most brokers recommend this method. The maximum amount you and your spouse can contribute is more than $100,000 per year, depending on your income. Tax is paid after retirement when you access these funds.

Option #2

401ks are much the same with a higher limit on contributions. This type of fund is only for the self employed with no employees except for your spouse. You can hire contractors but not anyone with a W-2. The paperwork is more complicated so not encouraged by brokers. Tax advantages are very similar to the above.

Option #3

Roth IRAs are suitable for both the self employed and the employee. The contributions are not tax deductible, instead you pay tax on your contribution that tax year. The maximum yearly contribution is $10,000 per couple. You do not pay tax on retirement when you access your funds. An added advantage to this is that you do not pay tax on your profits, they are tax free. The principal amount can be withdrawn before retirement with no tax penalties.

Option #4

Self directed solo IRAs are becoming increasingly popular and for good a reason. You get to gave the say where your money is invested. That, combined with the right information can be very beneficial.

As you can see by the above options all four, solo IRAs, 401ks, Roth IRAs and self Directed IRAs can be of use to you. The key is to diversify in today's economic situation. Self directed IRAs are very beneficial particularly when you have good advice. There are such people around that do as little or all of the work for you while you reap in the profits.

If you lead a busy lifestyle planning for retirement can be the last thing on your mind. Don`t delay, find a company that you can trust to assist you. The right advice is crucial. I have a lot of interesting information on my site if you would like to take a look, please click on the link.