John’s Blog — Tidbits on a Lot of Things

Using a Solo-K LLC for your Investments

An IRA is required to use an LLC (or similar structure) to have checkbook control, but a Solo-K is not. However, a Solo-K may elect to utilize an LLC for plan investments, but it is not required to do so. And, it may be of great benefit to you. Think of the visual of an LLC account being the “investment…read more →

Individual 401(k) Plan vs Solo-K Plan…are they the same?

We aren’t trying to confuse you by asking this question. An individual plan and Solo-K plan are the same. Whether the plan is called a Solo 401k, Solo 401(k), One Participant Plan or Uni-K, they are the same. They may also cover that individual’s and potentially that person’s business partner and/or spouse. From an IRS perspective, there would not be…read more →

IRA Custodians — Their Role in the IRA LLC or IRA Trust Process

Let’s get the mystery out of the way right away. All IRAs are required to be held through a custodian. As part of this responsibility, the IRA custodian will report the annual value of the IRA to the IRS each year. Can I Choose any IRA Custodian I Wish? Yes and no. As you may know, custodians such as Schwab…read more →

Benefits of a Solo-K LLC

You may not be familiar with the Solo-K LLC! You are most likely familiar with the IRA LLC or IRA Trust, where the utilization of the LLC or Trust permits you checkbook investment control of the IRA funds. Being manager of the LLC or Trustee of your IRA Trust, you have the responsibility to comply with all IRS Prohibited Transactions….read more →

Steps for Establishing & Funding Your Solo-K

Prior to establishing your Solo-K, you want to make sure that you meet the IRS’ requirements for sponsoring your Solo-K plan. The business structure you elect/hold can be a sole proprietorship, LLC, S-Corp, C-Corp, or Partnership. Also, every State can be different in their licensing/registration (if any) requirements for business structures. You will want to make sure you are aware…read more →

IRS Tax Scams

After being scammed (almost) by one of the bad guys myself, I learned just how easy it is to potentially fall for some of the tricks of the trade. After reading a recent IRS post on this topic, I figured why not share some of the scams that the less-than-honest folks who live among us are doing: Phone Scams This…read more →

Reporting Rollovers INTO Your Solo-K

Call this an administrative responsibility for your plan…because it is. However, practically speaking, let’s use a recent real life example of why you want to make sure you report rollovers into your Solo-K. I am going to use the example of “Tom”, self-administered Solo-K client. Tom established his plan in 2016 with a rollover of $1.2 million “something”. Recently, Tom…read more →

Terminating Your Solo-K

There will come a time for most of us (hopefully) where we need to terminate our Solo-K plan. While this is not difficult to do, please do not forget to terminate the plan. Remember you are the Trustee for the plan, and no one else can direct the plan to be terminated. It is your plan! Fortunately, you do have…read more →

QRP — Best Self-Directed Retirement Plan…EVER?!

Shhh….are you one of the chosen ones bestowed with the wisdom that is….shhh….QRP?! It seems to be the rave when it comes to a self-directed retirement plan, but should it be? It has such a mysterious and sexy name, it just has to be good, right?! Based on how the product is being promoted, self-directed investors should be lined up…read more →

Solo-K Participant Loan – Mind your P’s and Q’s!

One of wonderful benefits of your Solo-K plan is that your plan will have the ability to exercise a participant loan taken by the participant from their 401(k) funds. Of course, this post is not intended to advise you whether you should ever take a loan….there are pro’s and con’s of doing so….but, rather, you have the legal right to…read more →