Trusts

Wyoming Solo 401(k) LLC

What is a Wyoming Solo 401(K) LLC?

For those who prefer to have more control over alternative investments and 401k investing—a Wyoming LLC that acts as a solo 401k provider may be the answer for you. An LLC is a type of alternative investment that allows you to access money in your retirement account directly rather than having to go through a third party or custodian.

A Solo 401(k) LLC is created when qualified money from your current retirement plans are combined into a Solo 401(k), and then invested into a newly created Wyoming LLC (limited liability company). This leads to the creation of your brand new Wyoming Solo 401(k) LLC retirement account.

Why create an Wyoming LLC to hold Solo 401(K) assets?

Solo 401(k) LLCs have become a popular investment choice for Solo 401(k) investors due to their flexibility. In most cases, the Wyoming LLC is owned 100% by the Solo 401(k), which allows the Solo 401(k) owner to hold the money rather than the Solo 401(k)’s custodian. There are many benefits to using this option for your self-directed investments including:

  • Checkbook control  The Wyoming Solo 401(k) LLC allows you to make timely investments into assets like real estate, tax liens, and foreclosures that otherwise would be very time consuming through a custodian.
  •  Diversify Your Portfolio  Purchase traditional investments like stocks, bonds and mutual funds in addition to real estate, tax liens, franchise or small businesses through the Wyoming Solo 401(k) LLC.
  •  Limit Custodial Fees  Regardless of how much money you have or the amount of investments you make, a Solo 401(k) LLC should not have to pay any transactional, asset or holding fees.
  •  Greater Investment Opportunities  When structured appropriately, a Wyoming Solo 401(k) LLC can allow you additional buying power and investment opportunities by combining investment capital from many sources.

Loan Access

While an IRA offers loan option; the Solo 401(k) allows you to borrow up to $50,000 or 50% of your account value, typically at the prime interest rate, plus 1%. This feature allows individuals with a Solo 401(k) the ability to access the money for many purposes.

Maximize Your Contribution Limits

Solo 401(k) investing allows you to contribute up to $18,000 ($24,000 for individuals over 50) for 2016.  Similar to SEP and SIMPLE IRAs, the Solo 401(k) also allows for employer contributions, maximizing your contribution limit up to $53,000 (or $59,000 for individuals over 50) for 2016.

Roth Contributions

With IRAs, those who make more money are not allowed to contribute to a Roth IRA or convert their traditional IRA into a Roth IRA. On the other hand, the Solo 401(k) has a Roth “bucket” option, allowing you to make Roth contributions ($18,000 for employees plus an additional $24,000 for individuals over 50) for 2016 without income restrictions.

Tax-Deferred or Tax-Free Earnings

Any money that is contributed to this account can be made into an alternative 401(k )investment. This means you can invest in most real estate, precious metals, private placement memorandums and more. If the account is a Roth, your earnings on these investments grow tax-free, as long as the investment stays under your Solo 401(k).

Who is eligible for a Solo 401(k) LLC?

The Solo 401(k) LLC is perfect for any self-employed business owner seeking to take a personal loan, provide flexible contribution options (such as Roth contributions) for their retirement or have a more hands-on approach to investments in their retirement accounts.  The Wyoming Solo 401(k) is perfect for self-employed business owners such as real estate investors, real estate agents, consultants, lawyers, doctors, contractors and more. To be eligible, you can’t have any full-time employees, aside from your spouse.

What is included in the Package

  • 401(k) setup and guidance by a major financial services firm
  • Instructions on the setting up of a bank account
  • Tax filing help by the financial services firm
  • Two Wyoming LLC’s
  • LLC Kit with instructions on it’s relationship to the 401(k)
  • Registered Agent Service for one year
  • All state fees for the first year
  • Specialized LLC operating agreement.
  • Cost is $1495 for the first year

Call us for any other questions you might have or place you order online.

Click here for pricing on forming an LLC.