Checkbook Control

IRS Form 5500-EZ

With the recent pilot program for relief on penalties for late filings of the 5500-EZ (expired June 2, 2015), and with the formal adoption of an on-going program effective after the conclusion of the pilot program, we might as well stay on topic with another 5500-EZ consideration.  And, that is when must the Form 5500-EZ be submitted. What Does the…read more →

Solo 401(k) Plans — Common Law Employees (Part 2)

In the previous blog post we addressed what types of employees must be included in a company’s 401(k) plan.  Or, more correctly, we noted exceptions to individuals being required to be enrolled into the 401(k).  These exceptions generally include: –  Employees who, as a general class, never work more than 1,000 hours per year; –  Employees who are seasonal and,…read more →

Solo 401(k) Plans — Beware of Common Law Employees

Had a call that I absolutely welcomed receiving today from a client.  The issue he raised can always be re-addressed with Trustees of 401(k) plans….and that is what issues should be considered if you are even thinking of hiring employees to your self-employed business.  Believe it or not, the issue of a business that sponsors a 401(k) plan adding ANY…read more →

“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 →