John’s Blog — Tidbits on a Lot of Things

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 →

Why a Solo-K vs. Other Plans

If you qualify or can legitimately qualify for a Solo-K plan tied back to a self-employed business, do it! Of course, there are considerations you will need to make. Is your business structured as a sole proprietorship, LLC, S-Corp, C-Corp or partnership? While there are different rules which may affect the structure, the Solo-K will typically outshine any IRA product….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 →

Reporting IRA and 401(k) Rollovers on the 1040

It is that time of year when you may have rolled over funds during 2019 from a previous IRA or 401(k) to your new self-directed IRA or self-administered 401(k) plan. While you may not consider this rollover a distribution (“John, I just rolled over the funds as a non-taxable rollover”), the IRS does still consider this to be a distribution….it is…read more →

How do I Complete a W-9 for an IRA LLC

The use of a W-9 with your IRA LLC investing is a certainty.  Don’t be afraid to complete and submit….you will need to complete at some point in time, especially if you make a passive investment with an investment sponsor.  The W-9 is not submitted to the IRS; rather, a W-9 is utilized to collect information for tax reporting, including…read more →

Is the Solo-K Best for the Self-Employed Individual?

For the self-employed individual, there are various retirement plans that may be of interest.  There is always the question: is the Solo-K best for the self-employed individual?   For this blog, we are not going to be comparing different plans.  What we will address are some key components to the Solo-K that you should certainly consider in your selection of the…read more →