John’s Blog — Tidbits on a Lot of Things

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 401(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! These steps, fortunately, do…read more →

De-Mystifying the QRP

In a previous post we discussed that a QRP is really nothing more than a marketing term. Kudos are due to the marketers associated with the QRP, as they have created a bit of sexiness and mystery to the product. The goal in this post is not to promote or criticize the QRP, but to de-mystify the QRP….what is it…read more →

Annual 5500-EZ Form

For many of you, this blog may not be applicable, but it is important to remember this obligation your Solo-K (also known as an Individual 401(k), Uni-K, Self-Administered 401(k) Plan) plan has IF applicable to the plan. As we have discussed before, there is very little reporting requirements generally applied to an individual 401(k) plan. Two responsibilities of note that…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 →

Hobbies – Is not Self-Employment

Qualifying for a Solo-K (also known as an Individual K, Uni-K or Self-Administered 401(k) is not difficult but, there are some activities that the IRS does not consider to be active by nature…and, hobbies are not considered self-employment activities…with a caveat! The IRS has provided some tips on when your “activity” may not actually be self-employment activities, rather a hobby….read more →

After-Tax Contributions

Do you need to have after-tax contribution options in your Solo-K? No. If you want to maximize your contributions to your Solo-K, should you consider having a plan with after-tax contributions? Yes! If you are interested in maximizing Roth contributions and creating the ability to have an additional source of Roth funds (explained in more detail below) in your Solo-K,…read more →

Solo-K Contributions

Even with the advent of Solo-K plans, it seemed as though many CPAs still recommended their self-employed clients to create a SEP-IRA (self-directed or not), rather than a Solo-K. Sure, in the early years, many CPAs were probably not aware of the plans, few maybe knew how they were to be operated and administered and, quite possibly, more suggested the…read more →

Solo 401k – Defined and Eligibility

Perfect for the Business Owner that has no common law employees! The Solo 401k (self-directed) is a plan that can be utilized by a sole proprietor, partnership, S-Corp or C-Corp. It is a retirement plan that allows the business owner with no common law employees the ability to contribute to their plan at the highest levels (based on corresponding income)…read more →