John’s Blog — Tidbits on a Lot of Things

Solo 401(k) Plans & After-Tax Contributions (Part 3)

In this final blog of the three-part series on after-tax contributions, we are just going to throw out some general considerations for an individual thinking about making after-tax contributions. As a reminder, provided 401(k) plan documents permit, a 401(k) participant has the potential to make contributions in the following ways: 1)  Pre-Tax Employee Elective Deferrals 2)  Roth Employee Elective Deferrals 3) …read more →

Recruiting Insurance Agents Using Self-Directed 401(k) Plans

You are an insurance company manager who has the responsibility of recruiting seasoned and newly-licensed insurance agents.    You want and need to attract quality individuals but, let’s face it, how much can you offer in the form of actual benefits, especially if we are talking about self-employed, 1099 agents? The normal entrees showcased in the recruiting interview might include: Insurance Product Knowledge…..check Sales…read more →

Solo 401(k) Plans & After-Tax Contributions (Part 2)

In the first blog, we defined what an after-tax contribution is and what type of contributions are permitted within a 401(k) plan.  In this blog, we will show an example of why a self-employed individual should strongly consider making after-tax contributions to their Solo 401(k) plan. 401(k) Contribution Limits As a refresher, an individual may make sizable contributions to a…read more →

Real Estate Agents and Self-Directed IRAs

I have done a post or two on the benefits of any independent, self-employed professional establishing a self-directed, SOLO 401(k) plan.  In fact, a profession that, logically, should discuss this with their 1099 professionals, is the real estate broker or real estate company. But…. Let me use a real life example of why a self-directed IRA may not be the…read more →

Solo 401(k) Plans & After-Tax Contributions (Part 1)

Every so often there is the opportunity for a person to say, “I had no idea!”  Well, with a recent IRS Notice addressing “after-tax” contributions, not only will many people make this comment but they may also believe that the IRS is, as the saying goes, “throwing them a bone.” Especially if you are operating a self-administered Solo 401(k) plan,…read more →

Benefits of the Self-Directed 401(k) — A Couple More!

In the previous two blogs we examined a number of reasons why the 401(k) plan is in almost all circumstances better than the IRA.  The first two blogs provide significant benefits of the 401(k) to make even the most ardent supporter or the IRA sit back and take notice.  The 401(k) is really so much of a better plan that…read more →

Charitable Giving from an IRA or 401(k) – A Story

For those that are fortunate enough to consider charitable giving….congratulations!  Not only have you been blessed  with accumulating significant financial wealth, you deserve kudos for wanting to “pay it forward” through charitable giving. This blog is going to be off topic just a tad….while it still ties back to self-directed retirement plans, it comes from a different slant.  It is…read more →

Need More Reasons Why a Self-Directed 401(k) is Better Than a Self-Directed IRA?

This is the second of three blogs on the topic of why a self-directed (or self-administered) 401(k) is, practically speaking, always better than its more recognized sibling, the self-directed IRA.  In the first blog we examined some of the enticing  benefits of establishing the 401(k). But….. You do need to qualify for the 401(k) by having a legitimate business that…read more →

Is a Self-Directed 401(k) More Than Plan Documents?!

You’ve done your research, you understand the fee structure and you know you are eligible to establish a Solo 401(k) plan…great, you are on your way!  But now that you’ve made your decision on which plan document sponsor services you wish to retain, now comes  the nitty-gritty of how your plan should be structured and how your plan document sponsor does…read more →

How a Self-Directed IRA is Superior to a Self-Directed 401(k)?!

It isn’t……… Are we done with the blog? Okay, seriously, instead of a short blog on the few reasons why one might benefit or need an IRA over a 401(k) (and there are some reasons or benefits), why don’t we focus on why the 401(k) will, in almost all cases, outshine the IRA.  In fact, there are so many benefits…read more →