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 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 […]
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 […]
Overview A solo 401k has a contribution limit of $69,000 for 2024. If you’re 50 years of age or older, you can contribute an additional $7,500 in catch up contributions. Solo 401k contributions are broken down by employer and employee: Employee contributions: You can contribute 100% of your compensation up to a maximum of $23,000 […]
OVERVIEW What is a Roth solo 401k? When you open a solo 401k plan, many plan providers will give you two different accounts: A traditional (pre-tax) solo 401k account and a Roth (post-tax) solo 401k account. The traditional solo 401k gives you a tax break when you contribute, and the Roth solo 401k gives you […]
SIMILARIES DIFFERENCES Both the Roth Solo 401k and the Roth IRA are funded with post-tax dollars. You contribute with income that’s already been taxed, but you don’t pay any taxes when you withdraw from either of the two accounts in retirement. In other words, your money compounds tax free, and then you get to keep […]
The Eligible Automatic Contribution Arrangements (EACA) is a small business tax credit offering $1,500 in tax credits to anyone with a Solo 401k Plan with auto-contributions enabled. This means that you can set up a Solo 401k Plan with Carry, with auto-contributions enabled, and receive $500/year in tax credits for the first 3 plan years. […]
