La Jolla, Calif. (PRWEB) October 27, 2005
401kBrokers.com, and its wholly owned subsidiary, 401kAdministrators.com, a Third Party Administrator, (“TPA”), remind small business owners, independent contractors, consultants and all self-employed people that Solo 401k plans are now specifically protected from creditors in bankruptcy by the new Bankruptcy Abuse Prevention and Consumer Protection Act.
On April 20th, 2005 the President signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Act). The Act makes significant changes in the bankruptcy rules, including adding specific protections for Solo 401k retirement plans. The Act goes into effect for bankruptcy petitions filed after Oct. 16, 2005.
The new law exempts from the bankruptcy estate assets held by Solo 401k. The effect of the exemption is to place Solo 401k plan assets beyond the reach of creditors during or after a bankruptcy proceeding. The exemption for retirement plan assets applies irrespective of whether the debtor elects the federal or state bankruptcy exemptions. The new law contains an exception for federal tax liens but imposes no dollar limitation on the exemption for Solo 401ks.
Amounts directly rolled over to a Solo 401k qualify for the exemption as do amounts distributed and rolled over within the 60-day rollover period. Required minimum distributions, 72(t) distributions, and hardship distributions are not protected under the new law. Once money is withdrawn from a plan, it no longer is protected.
401kBrokers.com offers Solo 401k plans for the self-employed utilizing Vanguard Funds, Ameritrade and Scottrade as the asset custodians. All of 401kBrokers.com low cost “open architecture” Solo 401ks permit investment in all exchange traded stocks, bonds, options, thousands of mutual funds and government and municipal securities as well as money market funds and certificates of deposit.
These Solo 401k programs are only available from 401kBrokers.com and have no ($0) start up costs. Additionally, 401kBrokers.com receives zero ($0) in sub-transfer agency fees, zero ($0) in 12(b)(1) fees, and zero ($0) in placement fees (i.e. marketing fees, finders fees etc.).
401kBrokers.com Solo 401k plans allow the self-employed to deduct up to $46,000 per year from their taxable income and save or invest that amount tax deferred for retirement. Enrollment forms are available on the web at 401kBrokers.com 24 hours a day and customer service is open from 8:30 am. to 6 pm. PDT. Their new program comes with unlimited toll free phone and email support for the life of the plan. With their new revised website, opening and managing a Solo 401k plan has become easier than ever.
“Our new program also allows the self-employed to open or expand their business with funds borrowed from their 401k” says Craig Gillooly, an Attorney and President of 401kBrokers.com. In addition, we are now able to process orders faster, provide better customer service and lower costs, so that self-employed people can save more for retirement than ever before.”
With this new Solo 401k plan, self-employed business owners and independent contractors can dramatically increase their income available during retirement. “Saving one or two percentage points a year in costs on the way to retirement makes a huge difference in how much you have accumulated when you finally get there.”
401kBrokers.com markets their 401k programs direct to small business owners and is also currently working with fee-only and fee based financial advisors, financial planning firms and CPA's to inform their self-employed clients that they can save and invest tax-deferred for retirement with their own Solo 401k.
For more information, please contact Craig Gillooly at 800-474-3826.