Real Estate IRA Investments – Is it Legal?

March 6th, 2013

The IRS has always permitted an IRA to purchase or hold real estate or raw land. Making a real estate IRA investment is as simple as writing a check. The Internal Revenue Code does not describe what an IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 […]

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Can I Pay Expenses From a Self-Directed IRA Real Estate Investment with Personal Funds?

February 26th, 2013

In general, when it comes to making self-directed IRA real estate investments, all expenses associated with the IRA owned real estate must be paid using IRA funds.  In other words, payment of any expenses associated with the self-directed IRA real estate investment must be made using IRA funds and not by the IRA owner.  The […]

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Can I Have a Solo 401(k) Plan and Contribute to an Employer 401(k) Plan?

January 23rd, 2013

Yes – the IRS and the ERISA rules do not include any exclusive plan rules.  Therefore, once can be a participant of more than one 401(k) Plan.  Thus, one can have a full-time job that offers a 401(k) Plan and participate in the plan as well as have a Solo 401(k) Plan.  They key is […]

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Can I have an IRA and a Solo 401(k) Plan at the Same Time?

January 15th, 2013

The 401(k) plan qualified plan rules do not contain an exclusive plan rule.  Hence, a plan participant is able to participate in an employer 401(k) Plan or Solo 401K Plan as well as make annual IRA contributions. Under the 2013 new Solo 401(k) contribution rules, a plan participant under the age of 50 can make […]

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IRS Announces New Higher Annual 401(k) Plan Contribution Limitations for 2014 for the Individual 401K Plan

January 3rd, 2013

Individual 401K Limits 2013 Self-employed individuals and business owners with an Individual 401K Plan can defer up to $52,000 and $57,500 if over 50 years old in 2014 Starting on January 1, the Internal Revenue Services (“IRS”) announced that self-employed individuals and small business owners that have adopted an Individual 401K plan for the 2014 […]

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IRS Announces Higher Annual Solo 401(k) Plan Contribution Limitations for 2013

January 3rd, 2013

Self-employed individuals and business owners can defer up to $51,000 and $56,500 if over 50 years old in 2013 Starting on January 1, the Internal Revenue Services (“IRS”) announced that elf-employed individuals and small business owners that have adopted a solo 401K plan for the 2013 taxable year will be able to make tax-deferral employee […]

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Is the Checkbook Control IRA Solution Legal?

October 30th, 2012

The legality of the Checkbook IRA structure has not come under question since the IRS conceded that investing IRA funds in a wholly owned entity is not a prohibited transaction in the U.S. Tax Court case Swanson V. Commissioner 106 T.C. 76 (1996). In light of Swanson, some IRA custodians are still trying to mislead […]

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Can I Have a SEP IRA and a Solo 401(k) Plan at the Same Time

October 30th, 2012

There is no exclusive plan rule for a Solo 401(k) Plan and SEP IRA.  Only a SIMPLE IRA has an exclusive plan rule, meaning one can not combine a Solo 401k Plan with a SIMPLE IRA.  Even though one can have a SEP along with a Solo 401(k) plan, there is generally not many benefits […]

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