IRA Financial Group of Miami, Fla., has introduced a new Roth Solo 401(k) estate plan that will allow self-employed individuals and small business owners to pass funds to children or grandchildren tax free.
With the Roth Solo 401(k) Plan, one can make up to $23,000 of Roth contributions annually for 2013 and have that money grow tax free.
When the holder of the IRA passes away, the self-directed Roth IRA funds can pass tax free to a spouse or beneficiary.
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With IRA Financial Group's Roth Solo 401(k), a self-employed business owner can make almost any investment tax-free, including real estate, tax liens, precious metals, currencies, options, and private business investments.
A small business owner who reaches the age of 59 ½ can generally live off the Roth 401(k) investment income tax-free or take a portion of the Roth 401(k) funds and use it for any purpose without ever paying tax.
The Roth Solo 401(k) Plan combines features of the traditional 401(k) with those of the Roth IRA. The Roth plan has the same advantages as a Solo 401(k) Plan, but as with a Roth IRA, contributions are made with after-tax dollars. By using after-tax dollars, the individual will not receive an upfront tax deduction, but will ultimately benefit from tax-free appreciation and the ability to transfer funds to a future generation without tax," said Adam Bergman, a tax attorney with the IRA Financial Group.
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