John’s Blog — Tidbits on a Lot of Things

“Transfers” of 401(k) Plans

Many of you are familiar with an IRA transfer where you “transfer” assets from one IRA to another IRA.   IRA transfers can be executed at will by the IRA owner.  But, what about 401(k) plans?  Is there a transfer provision for 401(k) plans or just rollovers? Yes, transfers can occur.  But, let’s use two examples to explain what would be…read more →

401(k) Plans — Final Chance to File IRS Form 5500-EZ

At the outset, individuals with assets of more than $250,000 in a Solo 401(k) plan must annually report the assets of the plan through the IRS 5500-EZ form.  HOWEVER, this post is not intended for those individuals….today. Rather, individuals who have sponsored a Solo 401(k) plan as a sole proprietor or through some other entity (e.g., S-Corp, LLC) and have…read more →

W-9 Forms for 401(k) Plans or 401(k) LLCs

If you have made many investments from your 401(k) plan or your 401(k) LLC, invariably you have had that pesky response for a completed W-9 form.  You know it is not difficult to complete, but we are talking about completing the W-9 for your 401(k) or 401(k) LLC (if you have).  The entity receiving investment funds from your plan and…read more →

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 →