About Company
Solo 401k by Nabers Group is a retirement plan providing investment options for investors.
The Nabers Group is a financial services firm located in Houston, Texas, that specializes in providing retirement plans for self-employed individuals and small businesses. The company was founded in 2006 with the goal of helping small business owners and entrepreneurs take control of their financial futures.
Solo401k offers a variety of retirement plan options, including Solo 401k plans, defined benefit plans, and cash balance plans. These plans are designed to provide tax advantages and retirement savings opportunities for small business owners and self-employed individuals who may not have access to traditional employer-sponsored retirement plans.
In addition to retirement plan services, the Nabers Group also provides financial education and resources to help individuals make informed decisions about their finances. They offer webinars, blog articles, and other resources to help clients understand the benefits and risks of different investment strategies and retirement planning options.
Solo 401k is an individual 401k plan for small business owners having no employees. There are no age or income restrictions, but there are contribution limits of $61,000 in 2022, with catch-up contributions of up to $6,500.
Key Features
Solo 401k is a type of retirement plan specifically designed for self-employed individuals or small business owners without any employees other than a spouse. The Nabers Group is a company that specializes in Solo 401k plans, and they offer some key features that set them apart from other providers:
- Checkbook control. With Nabers Group's Solo 401k, you have "checkbook control" over your plan. This means you have direct control over your plan's assets and can invest in a wide range of options, including real estate, private equity, and more.
- High contribution limits. Solo 401k plans allow for higher contribution limits compared to other retirement plans. With Nabers Group, you can contribute up to $61,000 annually or $69,500 if you are age 50 or older.
- Roth option. Nabers Group's Solo 401k also offers a Roth option, which allows you to make after-tax contributions to your plan. This can be beneficial if you expect your tax rate to be higher in retirement.
- Easy administration. The Nabers Group Solo 401k plan is easy to administer, with no annual filing requirements for plans with less than $250,000 in assets. This can save you time and money compared to other retirement plans.
- Loan option. With a Solo 401k from Nabers Group, you can also take out a loan from your plan, up to 50% of your plan balance or $50,000, whichever is less. This can be a useful option if you need to borrow money for a major expense.
Pros and Cons
The Solo 401k plan offered by the Nabers Group is a retirement plan specifically designed for small business owners or self-employed individuals. Here are some pros and cons to consider when using small business retirement plans and evaluating the Solo 401k plan:
Pros
- Higher contribution limits. Solo 401k plans allow for higher contribution limits compared to other types of retirement plans, such as traditional IRAs or SEP IRAs. As of 2021, the contribution limit for a Solo 401k plan is $61,000 ($69,500 if age 50 or older), compared to $6,500 ($7,500 if age 50 or older) for traditional IRAs.
- Flexibility in investment options. Solo 401k plans offer a wide range of investment options, including stocks, bonds, mutual funds, and real estate. This allows for greater flexibility in building a diversified investment portfolio that can help meet your retirement goals.
- The Roth option is available. Nabers Group offers a Roth Solo 401k plan option, which allows you to make after-tax contributions to your account. This can provide tax-free growth and withdrawals in retirement.
- Easy to set up and maintain. Setting up and maintaining a Solo 401k plan with Nabers Group is relatively easy and straightforward. You can complete the entire process online, and the company provides ongoing support and resources to help you manage your plan.
Cons
- Limited to self-employed individuals. Only self-employed individuals or small business owners with no employees (other than a spouse) are eligible to open a Solo 401k plan. If you have employees, you may need to consider other retirement plan options, such as a traditional 401k or a SEP IRA.
- Limited to certain types of businesses. To be eligible for a Solo 401k plan, your business must be a sole proprietorship, LLC, partnership, or corporation. If your business is structured differently, you may not be eligible for this type of plan.
- Administrative responsibilities. As the plan sponsor, you are responsible for ensuring that your Solo 401k plan is compliant with IRS regulations and reporting requirements. This includes filing annual reports and maintaining accurate records. Failure to comply with these requirements can result in penalties and tax consequences.
- Limited borrowing options. While Solo 401k plans do allow for borrowing against your account balance, the borrowing options are typically more limited compared to other types of retirement plans. Additionally, borrowing from your retirement account can impact your long-term savings goals and should be approached with caution.
Terms and Conditions
If you set up a Solo 401k retirement account with Nabers Group, you can have larger tax advantages than is allowed with IRA. You can invest in real estate, digital assets, startups, precious metals, stocks, and more.
The more net earnings you get from self-employment, the lower tax bracket and the larger tax-deductible contributions you get.
You can get a $50,000 loan from Solo 401k by Nabers Group. There are no credit checks. You take it just from your online account. The company doesn't issue fees. The interest rate on your Solo 401 k will be 4.25%. The spouses are also eligible to take a loan amount of up to $50,000. The amount should be up to or less than 50% of your account balance.
With Nabers Group, customers can roll over IRA, traditional 401 k plan, 403b, TSP, and pension plan contributions into Solo 401 k. Nabers Group doesn't use your money. It is not a custodian and doesn't manage investments. You become your own custodian.
The sum you can contribute in 2022 is up to $61,000 or $69,000, including-up contributions if you are 50 and older. The same annual contribution limits are imposed on the participating spouses.
There are two types of contributions: employer contributions and employee contributions. Employee contributions are limited to $19,500 and $26,000 for individuals aged 50 and older. You can contribute $10,000 to the traditional 401 k plan and an additional $9,500 to the Solo 401 k plan. Employer contribution doesn't affect total contributions to your Solo 401 k plan and is made separately.
The company includes in your Solo 401 k plan a copy of the IRS Opinion Letter. It states that the IRS approves your plan. Nabers Group works with both IRS and DOL consistently and complies with IRS rules.
Funding a Loan
Solo 401 k plan funding is generally done in two ways:
- Rollovers. Nabers Group software for Solo 401k plan designs custom rollover. Requests contain information for your rollovers and include 1099-R forms.
- Contributions. With Nabers Group, you can make pre-tax salary contributions or Roth IRA contributions. They must be based on the net earnings of your business.
You can also open a brokerage account. Nabers Group provides information about opening bank and brokerage accounts. You can choose wisely from online brokers with the help of Nabers.
The company's business hours are Monday through Saturday, 8 am-6 pm MT. If you want to contact or visit the company on Sunday, you should make an appointment.
Tax Benefits of Solo 401k
Self-employed business owners who took Solo 401 k can enjoy the flexibility of dealing with tax obligations. The employer contributions you make current taxable income as a business owner within your retirement plans will be tax deductible, with the earnings growing until withdrawal.
The employee deferral contributions lower your taxable income for a tax year and grow tax-deferred, with distributions in retirement taxed as ordinary income. The contributions you make on your individual retirement account can be made as your employee deferral contributions on a Roth Solo 401 k plan. They don't reduce your income tax, but your distributions in your retirement plan are tax-free.
Solo 401 k allows employee contributions containing their total salary amount up to maximum contribution limits per year. It allows them to pay taxes in fewer amounts. However, it doesn't let to avoid the self-employment tax.
You need to meet a tax filing deadline for the tax year to complete the contributions once you set up your Solo 401 k account.
Solo401k vs. Charles Schwab
Solo401k and Charles Schwab are both financial services companies, but they differ in the types of services they offer and the target markets they serve.
Nabers Group is a private equity firm that invests in small to medium-sized companies in various industries, including technology, healthcare, and real estate. Nabers Group provides financing, strategic planning, and operational support to help these companies grow and achieve their goals. The firm also offers consulting services to help businesses improve their operations and profitability.
Charles Schwab, on the other hand, is a financial services company that offers a wide range of services to individual investors, including brokerage, banking, and financial planning services. Charles Schwab provides access to a variety of investment products, like stocks, bonds, mutual funds, and exchange-traded funds (ETFs), as well as retirement planning tools and educational resources. The company also offers trading platforms and tools to help investors make informed investment decisions.
Nabers Group and Charles Schwab serve different markets and provide different types of financial services. Nabers Group focuses on investing in and supporting small to medium-sized businesses, while Charles Schwab provides financial services to individual investors. You can get the Individual 401(k) Plan with Charles Schwab but cannot take a 401(k) loan.
Solo401k vs. Rocket Dollar
Solo401k and Rocket Dollar are both financial services companies, but they differ in the types of services they offer and the target markets they serve.
Nabers Group is a private equity firm that invests in small to medium-sized companies in various industries, including technology, healthcare, and real estate. Nabers Group provides financing, strategic planning, and operational support to help these companies grow and achieve their goals. The firm also offers consulting services to help businesses improve their operations and profitability.
Rocket Dollar, on the other hand, is a financial services company that provides self-directed individual retirement accounts (IRAs) and solo 401(k) plans. These plans allow investors to use their retirement funds to invest in alternative assets, such as real estate, private equity, and cryptocurrency. Rocket Dollar also provides educational resources and support to help investors make informed investment decisions.
Nabers Group and Rocket Dollar serve different markets and provide different types of financial services. Nabers Group focuses on investing in and supporting small to medium-sized businesses, while Rocket Dollar provides self-directed retirement plans for investors interested in alternative asset investments. You can get 401(k) loans and Roth contributions with Rocket Dollar. A basic account has only a $15 monthly fee.
Solo401k vs. Fidelity Investments
Solo401k and Fidelity Investments are both financial services companies, but they differ in the types of services they offer and the target markets they serve.
Nabers Group is a private equity firm that invests in small to medium-sized companies in various industries, including technology, healthcare, and real estate. Nabers Group provides financing, strategic planning, and operational support to help these companies grow and achieve their goals. The firm also offers consulting services to help businesses improve their operations and profitability.
Fidelity Investments, on the other hand, is a financial services company that offers a wide range of services to individual and institutional investors, including brokerage, retirement planning, and wealth management services. Fidelity provides access to a variety of investment products, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs), as well as retirement planning tools, educational resources, and financial advice.
Nabers Group and Fidelity Investments provide different types of financial services. Nabers Group focuses on investing in and supporting small to medium-sized businesses, while Fidelity provides a range of financial services to individual and institutional investors. If a business is looking for funding and strategic planning support, then Nabers Group might be a good choice, while if an investor is looking for retirement planning and investment options, then Fidelity Investments might be a better fit. Fidelity Investments' self-employed 401(k) plan has low fees, a wide range of investment choices, and retirement savings.
