Solo 401(k) Plan Vs. SEP IRA

May 20th, 2013

A Solo 401(k) plan” is an IRS approved retirement plan, which is suited for business owners who do not have any employees, other than themselves and perhaps their spouse. The “one-participant 401(k) plan” or individual 401(k) Plan is not a new type of plan. It is a traditional 401k plan covering only one employee. Like [...]

May 3rd, 2013

In general, an individual with an IRA is permitted rollover existing IRA funds to a new Solo 401(K) Plan. The IRA rollover can be in cash or in-kind assets, such as real estate or notes. The IRS allows IRA holders to rollover IRA funds and assets in a 401(k) qualified retirement plan. Note – Roth [...]

May 3rd, 2013

In general, an individual with a self-directed IRA that owns real estate is permitted to transfer in-kind the real estate to the a new Solo 401(k) Plan without tax or penalty. The IRS allows IRA holders to rollover IRA funds and assets in a 401(k) qualified retirement plan. Note – Roth IRA funds cannot be [...]

April 25th, 2013

At one point in everybody’s life they have or will contemplate the dilemma of what retirement plan is best suited for them. There are over 45 million IRA today. However, that does not necessarily mean the Self-Directed IRA is the right retirement strategy. A Self-Directed IRA, which is governed by the rules pursuant to IRC [...]

April 25th, 2013

For no tax or penalty to apply on distributions of Roth IRA funds, two things need to happen. The Roth IRA holder must be over the age of 591/2, AND The Roth IRA account must have been opened for at least 5 years. For more information on the self-directed Roth IRA LLC, please contact a [...]

April 25th, 2013

Converted IRA funds withdrawn before age 59 ½ are never subject to income tax. However, they will be subject to the 10% penalty for early distributions (unless another exception applies) if they have been in a Roth IRA for less than five years. Each conversion starts its own 5-year clock and the converted amounts are [...]

March 20th, 2013

The 2001 Economic Growth Tax Relief and Reconciliation Act included a provision that would allow small businesses to You may be claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or 401(k) qualified plan. The Solo 401(k) credit equals 50% of the cost to set up and [...]

March 11th, 2013

IRS Form 990-T, specifically Schedule E, is the tax form where a charitable organization of retirement account, such as an IRA or Roth IRA would report income that would be subject to the Unrelated Business Taxable Income (also known as UBIT or UBTI) or Unrelated Debt Financed Income tax. In general, only income generated from [...]