Also known as a deferred profit-sharing plan (DPSP), a profit-sharing plan is a retirement plan that gives employees a share in the profits of the company on a quarterly or annual basis. Contributions to a profit-sharing plan are tied to a company’s profits, rather than an employee’s contribution. Employees receive a percentage of the company […]
Understanding controlled group rules are important for business owners with multiple business interests. Controlled group rules exist to prevent business owners from offering themselves a retirement plan, like a solo 401k, through a side business, without offering any retirement benefits to their employees. Controlled group rules, especially affiliated service rules, are complex, but can be […]
Yes, solo 401k assets are protected from creditors during bankruptcy. If you were to file for bankruptcy, whether in Chapter 7 or 13, your solo 401k assets have unlimited protection under federal law. In 2005, The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was passed that excluded tax-qualified retirement plans (like a […]
One of the most attractive features of a solo 401k is the ability to invest in virtually any asset class. Instead of being limited to just investing in traditional assets like stocks, bonds, and ETFs, you can invest your plan in alternative investments like crypto, real estate, and startups. Investing in startups through a solo […]
One of the most common questions we get at Carry is: Can I open and contribute to a solo 401k if I have a full-time job with an employer? Yes, you can have a solo 401k even if you have a full-time job. While a solo 401k is a retirement plan for business owners and […]
One of the most common questions that comes up with business owners looking to set up a retirement plan is: Can I contribute to both a SEP IRA and a solo 401k, and will doing so allow me to contribute more money per year? Yes, in certain instance, if you have two separate businesses, you can […]
You’re allowed to contribute to both an employer-sponsored retirement (like a 401k or solo 401k plan) and an IRA (both Roth and traditional) in the same tax year. However, there are some instances where your IRA contributions can get restricted or lose the ability to receive a tax deduction. Are you eligible for a solo […]
If you have an IRA with Vanguard and are considering moving your assets to a self-directed solo 401k, here are the steps to performing a rollover without triggering any taxes and penalties. Steps to move your Vanguard IRA to a self-directed solo 401k To transfer your funds from your Vanguard IRA, you must send them […]
If you’re the owner of a solo 401k plan, here are some important forms that you may be required to file depending on your account activity. Overview Form 5500-EZ Form 5500-EZ is an annual tax return required for all solo 401k plan owners with over $250,000 in plan assets. It’s essentially a yearly summary of […]
