Menu Close

Quick FAQ and Further Reading

Quick FAQ & Further Reading

What are the Prohibited Transactions Rules?

There are certain transactions and/or investments that are prohibited by the IRS.  If you engage in such transactions, you may face penalties by the IRS.  Read More


What is UBTI?

Unrelated Business Taxable Income, or UBTI, is a tax you can face if your retirement plan investment generates income “unrelated and carried on” including passthrough entities, such as an LLC.  Read More


What is Nonrecourse Financing?

Only a nonrecourse loan can be used to borrow money for a retirement account investment.  An IRA that takes a loan to a purchase a property will be subject to the UBTI tax.  Read More


Real Estate Investing with an IRA

A Self-Directed IRA allows one to use retirement funds to invest in real estate.  Investment opportunities include rental/income properties, fix and flips, and land and can be either residential or commercial.  Read More


Real Estate Investing with a 401(k)

If you are self-employed, the Solo 401(k) is the best way to use retirement funds to invest in real estate.  401(k) plans are exempt from the UBTI tax when real estate investing.  Read More


Investing in Cryptocurrencies

Cryptocurrencies, like Bitcoin, are treated as property for investment purposes, just like stocks or real estate.  Investing in cryptos with a retirement account is a tax-advantaged way to buy and sell.  Read More


Investing in Precious Metals

One can use retirement funds to invest in most precious metals, so long as they are not prohibited by the IRS.  Precious metal investments should be held with a trustee and not personally.  Read More


How Does the Solo 401(k) Loan Work?

One can borrow up to $50,000 or 50% of the 401(k) balance, whichever is less, for any reason.  Loans must be repaid quarterly with an interest rate of at least Prime.  Read More


Solo 401(k) Contributions Rules

Solo 401(k) contributions are made as both the employee (elective deferral) and employer (profit sharing) and can generally be made with pre-tax funds, after-tax or as a Roth contribution.  Read More


Roth vs. Traditional IRA

Both types of IRAs are a tax-advantaged way to save for retirement with the major difference being when the funds are taxed.  Read More


What is the Mega Backdoor Roth 401(k)?

If you are looking to maximize your tax-free retirement funds and you are self-employed, the mega backdoor Roth strategy will allow you to supersize your savings.  Read More


Checkbook Control vs. Custodian Control

When you have checkbook control of your retirement account, you have the freedom to invest in what you want, when you want.  While you can make many types of investments with Custodian Control, you generally need consent before making an investment.  Read More