Archive for the ‘Solo 401K Rules’ Category

Lending Funds to a Related Corporation is a Solo 401(k) Prohibited Transaction

August 9th, 2017

Zacky v. Commissioner, TC Memo 2004-130 The Zacky case involved three separate loans all of which were prohibited transactions under Section 4975(c)(1)(B), (D) and (E). The taxpayer, Mr. Zacky, was the president and sole owner of Aspects Inc. (“Aspects”), a corporation that maintained a qualified profit sharing plan. Mr. Zacky was one of many participants […]

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What is Required to Open a Solo 401k Plan?

July 26th, 2017

IRA Financial Group will help you set-up your Solo 401(k) plan quickly, professionally, and economically. The IRA Financial Group is attorney-owned and operated and its on-site tax and ERISA professionals will personally customize your Solo 401(k) Plan to fit the needs of your business as well as satisfy your retirement and tax planning goals. Once […]

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What Are My Options If My 401(k) Assets I want To Rollover to an IRA or Solo 401(k) Was Subject to 20% Withholding Tax?

July 20th, 2017

Generally, under most Solo 401(k) Plans, distributions cannot be made until one of the following occurs: You die, become disabled, or otherwise have a severance from employment. The plan terminates and no successor defined contribution plan is established or maintained by the employer. You reach age 59½ or incur a financial hardship. The Solo 401(k) […]

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Required Distribution Rules for a Solo 401k

July 18th, 2017

Once you reach the age of 70 ½, you must start to better understand the required minimum distributions (RMDs) rules. That’s because, upon reaching this age, the IRS requires you to withdraw at least a minimum amount each year from all your Solo 401(k)s, IRAs and other retirement plans—except Roth IRAs—and pay ordinary income taxes […]

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How Do the UBTI Rules Differ Between a Solo 401k and an IRA?

June 23rd, 2017

Like an IRA, the tax advantage of a Solo 401K Plan is that income is tax-free until distributed. In general, an exempt organization is not taxed on its income from an activity that is substantially related to the charitable, educational, or other purpose that is the basis for the organization’s exemption. Such income is exempt […]

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IRA Financial Group Announces New Solo 401(k) Plan Annual Services to Include Filing of IRS Form 5500-EZ

June 22nd, 2017

Solo 401(k) plan clients of the IRA Financial Group to be offered IRS Form 5500-EZ completion services IRA Financial Group, the leading provider of self-directed IRA and solo 401(k) plans, announces a new service for its annual tax and compliance service for Solo 401(k) plan clients to include the completion of the annual IRS information […]

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How to Take a Loan from Your Solo 401k Plan

June 19th, 2017

As long as the plan documents allow for it & the proper loan documents are prepared and executed, a participant loan can be made for any reason. The solo 401k loan is received tax free and penalty free. There are no penalties or taxes due provided loan payments are paid on time. The IRA Financial […]

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How Do the Tax Withholding Rules Work with a Solo 401k

June 6th, 2017

In 1993, Congress passed a mandatory withholding law that affects Solo 401(k) Plans. The law requires your plan administrator to keep 20% of all qualified plan distributions to pay federal income tax before distributing the remainder to you. There are, however, some exceptions to the mandatory withholding rule. For example, amounts that are transferred directly […]

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