Small Businesses Using Independent Contractors to circumvent ObamaCare penalties has triggered increase demand for Individual 401(k) Plan
IRA Financial Group, the leading provider of the self-directed solo 401(k) Plans has seen an increase number of small business owners having the opportunity to establish a Solo 401K Plan because of the emerging reliance on independent contractors. Due to the increased reliance on independent contractors to avoid hitting the 50-employee threshold, which would require them to pay for employees’ health insurance, starting next year, a number of small businesses are now able to adopt a Solo 401K plan because they have eliminated their full-time employees. “Not all small business owners have been able to turn all their full-time employees to independent contractors, but a number of businesses have tried in order to not be subject to the ObamaCare costs, “ stated Maria Ritsi, a paralegal with the IRA Financial Group. “The appeal of using outside non-employee workers is growing as many small businesses are trying to stay under the 50-employee threshold that would require them to pay for employees health insurance, beginning under the federal health-care law, or be subject to a penalty, “ stated Ms. Ritsi.
The Internal Revenue Service has started to crack down on small businesses to ensure their workers are properly classified. “We have seen a number of clients that were close to the 50-employee threshold, turn their workforce into independent contractors in order to not be subject to the ObamaCare penalty, “ stated Adam Bergman, a tax attorney with the IRA Financial Group. “Not all small business are able to turn to contractors to eliminate the reach of the federal health-care law, but we have seen an increasing number of small business owners try, “ stated Mr. Bergman.
“We have strongly advised clients to be extremely conservative in re-classifying past employees as independent contractors as the Internal Revenue Service have spending significant resources in this area, “ stated Mr. Bergman. “However, as business condition continue to be tough, companies are looking to remain competitive, especially with the increased costs assisted with ObamaCare, stated Ms Ritsi.
Small businesses that have been able to properly reclassify their employees as independent contractors have been eligible to adopt a Solo 401(k) Plan, which offers multiple benefits. IRA Financial Group’s Solo 401(k) Plan was designed to offer investors with a diverse and wide array of investment opportunities for their retirement funds. Clients can purchase stocks, mutual funds, precious metals, real estate, and much more. In addition, the Solo 401K Plan account can be opened at any local bank and financial institution, including Fidelity, Scottrade, TD Ameritrade and more. However, the most popular feature of the Solo 401K Plan is that a self-employed individual or small business owner can defer up to $56,500 annually as well as borrow up to $50,000 and use the loan proceeds for any purpose without tax or penalty.
IRA Financial Group open architecture Solo 401(k) Plan was designed specifically to provide self-employed investors with the ability to make a wide variety of investments through a single retirement account.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading “checkbook control Self Directed Individual 401K provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.