Need help with a retirement plan?

November 28, 2019 Ryan LeBlanc Columns, Ryan LeBlanc

Are plan loans allowed?

Sometimes.

Certain plan providers do permit them, though standard federal taxes and tax penalties apply if the loan is not paid back within five years. Some also allow hardship withdrawals from these plans (that is, withdrawals taken prior to age 59-½).

The administration duties for a solo 401(k) plan are relatively light.

There are no compliance testing requirements, and you will only need to file an annual Form 5500 with the I.R.S. when the assets in your solo 401(k) exceed $250,000.

On the whole, solo 401(k)s give SBOs increased retirement savings potential.

If that is what you need, then take a good look at this option.

These plans are relatively easy to create, and you are free to have one whether your business is a sole proprietorship, S corporation, C corporation, limited liability company (LLC), or limited partnership.

Certain independent contractors have the freedom to create solo 401(k)s as well.

 

About Ryan LeBlanc 27 Articles
Ryan LeBlanc is a managing member and founder of LeBlanc Wealth Management. As a locally based LPL Financial Advisor, Mr. LeBlanc specializes in objective asset management and wealth preservation planning for clients across the Southern Region. As president, Ryan serves as an LPL Financial Advisor, branch manager and registered principal for LPL Financial. In addition, he currently holds the series 6, 7, 24, 31, 52, 63 and 65 securities registrations. A native of New Orleans, Ryan graduated from Jesuit High School prior to attaining a B.S. from the University of Alabama with a specialization in investment banking.

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