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Why Every Realtor Should Consider Setting Up an Individual 401(k)

Individual 401(k)s are strictly for self-employed business owners with no full-time employees other than their spouse. Most realtors are considered self-employed, which makes them perfect candidates for an Individual 401(k).

Another reason that Individual 401(k)s are a perfect fit for realtors is the access that they have to great deals on properties. One of the benefits of having an Individual 401(k) is that it is completely self-directed. This means that the plan can invest in anything not specifically prohibited by the IRS. This includes, but is not limited to: stocks, bonds, mutual funds, real property, private stock, promissory notes, limited liability companies, etc. Realtors are often in the loop when it comes to finding great deals on properties. This would definitely put a realtor at an advantage over the general public in terms of self-directing a retirement account.

Individual 401(k)s do require a substantial amount of work on the part of the individual. You are required to do all your own due diligence on investments and keep track of everything coming in and going out of the 401(k). Also, most Individual 401(k) account holders act as their own trustee. This gives you a lot of freedom with the account, but also it requires that you do all of the IRS reporting for the plan and keep good records. If you have questions about reporting, then you can call us now.

Make sure to speak with a CPA or tax professional to find out if an Individual 401(k) would be a good fit for you. Also, please take a quick moment to share this post with other realtors that you may know on Twitter and Facebook. Now is the right time to get the word out about this uniquely designed retirement savings plan.

Terry White

About Terry White

I started my business career after getting my degree in Accounting from the University of New Mexico in 1983. My first job was as a controller for a local title company, and in 1987 I started First Financial Escrow, Inc. Over the years I played a part in several startup companies including First Financial Equities, Inc., First Financial Trust, Inc., First Financial Marketing, Inc. and Asset Ventures, Inc. In 1997 First Financial Escrow, Inc. was able to purchase the escrow accounts from Sunwest Bank and changed its name to Sunwest Escrow. As the market changes, Sunwest has grown and changed along with it. Besides my wife, Sheila, we have three boys, two daughters-in-law, one grandson, another grandson on the way and a future daughter-in-law. Sunwest is my passion, and I enjoy coming to work every day to see what will happen next. I enjoy fly fishing, spending time in Colorado, biking and watching my boys play soccer.