Carlos Hank Rhon: Self Employed Individuals Can Benefit with a Retirement Accounts.

by

Sandeep Soni

A retirement account can supply you with many benefits later on in life. As you work, explains Carlos Hank Rhon, you add in funds to your retirement account a little at a time. If your retirement account has the added benefit of interest then you will gain more money the longer you keep it in your account. This will supply you with the funding that you will be in need of once you decide to retire from working and live off of your benefits. Therefore, it is very important that you save as much money as you possibly can right now in order to prepare yourself for the future.

There are several different types of retirement plans available to you, explains Carlos Hank Rhon. You can decide to invest in an individual retirement plan where you deposit money into your account all on your own or you may want to go with a retirement plan that is set up through your employer such as a 401k retirement plan. There is also a self-employed 401k Plan. This is often referred to as a Solo 401k plan. It allows small business owners to have the ability to create their own tax free retirement account for their workers.

There are a few similarities when it comes to a solo 401k plan and a regular 401k plan that is used in many large businesses. A self-employed 401k plan is also very different from a regular 401k plan. It is important that you understand these differences before you decide to offer this type of retirement plan to those who work for your small business.

Just like with a regular 401k plan, you cannot withdraw from your plan before the age of 59.5 unless you want to pay the 10% penalty as well as any taxes on the amount that you withdraw. There are some hardship requirements that you may qualify for but for most cases the penalty and taxes remain in effect. The amount that you are able to deposit on an annual basis is also the same for both types of 401k plans, which was $16,500 in 2009.

However, notes Carlos Hank Rhon, unlike most traditional 401k retirement plans, with a solo 401k plan you have the ability to set aside up to 25% of your income as long as the total investment doesn t exceed $49,000. This amount goes up to $54,500 once you reach the age of 50.

These plans allow you to withdraw money over time once you reach a certain age or you can also take out a loan using the money that is currently in your 401k plan. Therefore, you get the added benefit of using your retirement money now while still having money in your account drawing interest to be used at a later date. Many people may not think about the benefits of a retirement plan when they are young and first start working but, it is a good idea to find out all that you can about the many benefits that you can receive from a retirement plan now and later on in the future when you will need the money for your everyday living expenses.

Carlos Hank Rhon – Carlos Hank Rhon is Chairman of the Board of Grupo Financiero Interacciones. Carlos Hank Rhon is one of Mexico\’s top investment bankers.

Carlos Hank Rhon

: commercial business lending.

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