OVERVIEW The mega backdoor Roth strategy using a solo 401k allows you to supersize your Roth solo 401k contributions each year. With a solo 401k account, you’re allowed to contribute up to 100% of your employee income, up to a maximum of $23,000 in 2024 into a Roth solo 401k. If you’ll be at least 50 […]
If you’re required to pay estimated tax payments, the IRS could charge you with an underpayment penalty if you pay too little, too late, or don’t have enough withheld from your wages. Accurately estimating your quarterly tax payments can be difficult, but in order to avoid getting fined, you’re required to pay at least 100% […]
OVERVIEW A company 401k plan helps employees save for their retirement. Most employers will offer a 401k account to their employees, with many plans deducting automatic contributions from their checks each month. The IRS sets a limit each year on how much you can contribute. There’s a set limit for how much employees and employers can contribute […]
If you’re eligible for a solo 401k, it can be a huge tax advantage to set up an account. A solo 401k has higher contribution limits than most other retirement plans, a Roth option, tax-free compounding, and almost no restrictions on what asset classes you can invest in. If you’re interested in setting up a solo […]
OVERVIEW Purchasing real estate through a retirement account like the solo 401k can be extremely tax-advantageous. Not only do you get tax deferrals until you retire, you also get tax-free withdrawals if you purchase through a Roth solo 401k. In other words, you don’t pay tax on any rental income that your property makes, you don’t pay […]
Highlights In 2014, the IRS released IRS Notice 2014-21, which determined that cryptocurrencies are to be classified as property for federal tax purposes, rather than as currencies. Like any property, buying or selling of cryptocurrencies are typically subject to capital gains tax. For example, if you buy bitcoin at $10,000 and it rises to $60,000, you’ll be […]
Having a large nest egg in a Roth IRA means you can enjoy tax-free withdrawals from your account in retirement. Roth retirement accounts, like a Roth IRA, are funded with post-tax income (money you’ve already paid income taxes on), and in retirement, your withdrawals are completely tax-free. Unfortunately, the Roth IRA has an income limit that restricts […]
To calculate your 2023 and 2024 required minimum distributions for your IRA or 401k, use the RMD table below and follow the steps. How to calculate your RMD Example Let’s say that in 2023, you turned 75 years old. And on December 31, 2022, your 401k account balance was $200,000. Based on the RMD chart […]
OVERVIEW Most people will start to withdraw from their solo 401k plans when they reach the eligible withdrawal age of 59½. But some people may not immediately need to take out any money and instead prefer to leave the money in their solo 401k for as long as they can. Unfortunately, the IRS doesn’t allow […]
