John’s Blog — Tidbits on a Lot of Things

Beneficiary Mistakes — Self-Directed 401(k) or IRA (Part 2)

In the previous post, we introduced three potential beneficiary designation mistakes.  In this post, we will point out a few more. Don’t Name Your Kid! This is not meant as harsh as it sounds.  As with other considerations, this relates to the issue of age.  There are WAAAAY too many people who identify their minor children as either a primary…read more →

Beneficiary Mistakes — Self-Directed 401(k) or IRA (Part 1)

This post is for beneficiary mistakes within an IRA or 401(k)….self-directed or not. Potential beneficiary mistakes with your self-directed 401(k) or IRA can be very real issues.  With proper planning and maintenance, your beneficiary can greatly benefit from your gift.  With poor planning, it can turn into a curse. As part of proper planning, you should always review your beneficiary…read more →

Roth Solo 401(k)

So-called Roth Solo 401(k) plans are becoming more popular.  The reason I say “so-called” is that it really a marketing term that seems to suggest that it is a “different” or “special” type of 401(k) plan.  The promoters often suggest that they “have” this new plan.  Is the plan “different”….well, yes.  “Special”…definitely.  But, it is “different” and “special” because of what they allow you to do, not…read more →

Self-Employed? SEP vs. Solo 401(k) (Part 4)

In today’s post, we are going to try to save you some money…..yay!!  Here are two additional reasons why a qualifying candidate should seriously consider the Solo 401(k) over the SEP-IRA….and, it may just save you some money as well. No IRA Custodian Fees Yes, a great benefit of the Solo 401(k) is that is not required to be held through a…read more →

Self-Employed? SEP vs. Solo 401(k) (Part 3)

In this post, we are going to expand on a couple more advantages of the Solo 401(k) over the SEP-IRA.  However, while we are not spending significant time on these two benefits, don’t be fooled into thinking they are not important.  Depending on your interest in how you make your contributions and your investment strategies, these two benefits are important for you understand….read more →

Self-Employed? SEP vs. Solo 401(k) (Part 2)

Solo 401(k) Participant Loans There are many financial planners who look at 401(k) participant loans with disdain.  They may advise that a participant never take a loan from their 401(k) plan.  In fact, many participants themselves may not want to take out participant loans. But, there is no doubt that the ability to access participant loans from a 401(k) plan…read more →

Self-Employed? SEP vs. Solo 401(k) (Part 1)

As a self-employed person who wants to self-direct their IRA or 401(k), the question may come up as to whether you should establish a self-directed SEP-IRA or Solo 401(k) plan. Self-directed or not and no offense intended, but most self-employed people after visiting with their CPA or financial planner believe that the SEP-IRA is better.  But is it?  OR, is it perceived as the…read more →

401(k) Rollovers — This Isn’t Rocket Science!

IRS rollover rules can be complicated and confusing.  Confusing especially when you do not do them all of the time.  But, it is a little bit more disappointing when a very large self-directed IRA custodian hangs someone out for 2 months when they can’t figure out what to do.  What even makes this more laughable is that the large self-directed…read more →

Checkbook Control of Your 401(k) — A Different Option?

As you know, wherever you house your 401(k), you most likely are wanting checkbook control of the plan’s funds as Trustee of the plan.  You already have that, but is there a different approach that may be more attractive to you?   Maybe having a separate “checkbook” for each participant account (e.g., Roth, Pre-Tax Elective Deferral Accounts)?  Is there a reason why…read more →

The Perfect IRA LLC?

Anyone I have spoken with who is interested in a self-directed IRA or 401(k), the question invariably comes up:  do you qualify and are you eligible for a 401(k)?  As you might imagine, just because the 401(k) plan may be viewed as more desired, one must qualify for the plan.  I make this inquiry as a self-directed (or self-administered 401(k)) invariably should be a seriously-considered…read more →