OVERVIEW A solo 401k plan requires that you must not have any employees, including part-time employees who are at least 21 years of age, and have worked over 500 hours per year for 3 consecutive 12-month periods. There is only one exception to this rule, your spouse. Having your spouse work in your business makes them eligible to be […]
With a Solo 401k, you can make contributions as either the employee or employer, since as a self-employed individual you are acting as both employer and employee. It is important that you differentiate between contributions you make as an employee or employer. Employee and employer contributions are subject to different limits, and are treated differently […]
If you look at Donald Trump’s tax returns, you’ll see that he barely pays any taxes, and the reason is because of depreciation. When you buy a property, it loses value over a period of time and you can start claiming that as a loss each year. Residential properties depreciate over 27.5 years, while commercial […]
Rollovers of a 401k are typically done when an employee departs from an employer. If you’re eligible for a solo 401k, rolling over a 401k into a solo 401k could give you some immediate benefits and tax-advantages that your old company 401k never offered. You get total control over what you invest in, a Roth account, […]
A solo 401k plan is only as good as what features your provider can offer you. Every solo 401k plan provider is different in the number of benefits and level of support offered. Low-cost or free plans, also called prototype plans, often don’t offer desirable features like the ability to make Roth contributions, take solo 401k loans, […]
Overview IRS Form 1065, U.S. Return of Partnership Income, is a tax document for partnerships to report their financial information to the IRS. It includes details about the partnership’s income, deductions, gains, losses, and other financial activities for the year. It’s not used to pay taxes but to show the IRS how the business’s income […]
A self-directed IRA gives you more investment options and lets you invest in alternative assets like real estate, crypto, and private equity. The downside is that every investment has to go through a custodian. You don’t have checkbook control. If you find something you want to invest in, you have to instruct your custodian to send the […]
OVERVIEW With tax-free compounding and tax-free withdrawals in retirement, a solo 401k is one of the best retirement accounts to hold high-growth assets. You don’t pay any taxes when you sell assets in your account (tax-free compounding), and with the Roth solo 401k account, you pay zero taxes on when you withdraw from your account […]
OVERVIEW The IRS does not define what you’re allowed to invest in through your solo 401k. Anything goes with a few exceptions. A solo 401k account is not allowed to invest in collectibles, S corporation stock, and life insurance investments. The solo 401k comes with total investment freedom. Unlike something like a traditional 401k, you’re not limited […]
