Self-directed individual (K) plan.
The Individual(k) Plan is a defined contribution plan for businesses that employ only the owners, their spouses, and partners. In some plans, including 401(k)s, business owners can make both employer and employee contributions. The Individual(k) is offered both with and without a Roth option, which permits after-tax contributions to the account.
If you currently have an Individual(k) and wish to self-direct your funds into non-traditional investments, you can easily move the funds to a Preferred Trust account.
Should You Consider an Preferred Trust Self-Directed Individual(k)?
- You are a sole proprietor with no employees other than your spouse or partner(s) whose only employees are self-employed partners and their spouses. The administrator of the plan is simply the business owner, their spouse or a partner. However, a designated third party works as well.
- You are looking for the largest potential contribution for a business without employees.
- You want the capability of borrowing from your plan.
- You want to purchase leveraged real estate in your plan and wish to avoid UBIT (Unrelated Business Income Tax).
