If you search online you will find that several types of Individual 401k plans that are available. Some of these self directed 401k plans allow investors to invest in alternative investments like gold, tax liens and real estate. Some Individual 401k plans allow you to do complex transactions in which you can buy shares of stock in your business. These 401k plans are complex, very expensive (sometimes thousands of dollars to setup and have high annual maintenance fees) and may have potential complications with the IRS.
A simple alternative to these complex plans would be to set up an Individual 401k that uses mutual funds as the investment choice within the 401k. US corporations traditionally have had mutual funds as the investment vehicle within their 401k plan and 401k participants are usually familiar with this type of investment option. An Individual 401k that uses mutual funds as the investment option can be inexpensive administratively. BCM works with several Individual 401k providers, however the Individual 401k we recommend most frequently to our clients costs $0 to setup and $15 annual fee (the $15 fee waived with a $50,000 balance). The 401k loan fees are $50 application fee and an annual fee of $25. Through this 401k there over 50 mutual funds to choose from ranging from conservative bond mutual funds to aggressive stock mutual funds to accommodate investors based on their age, time horizon and personal risk tolerance. Complete the form below and we would be happy to provide you with information about this Individual 401k.