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Terminating Your Self-Administered Solo-K Plan

As I have said before, there comes a time for most where it is time to give your solo-k (also referred to as a self-directed 401(k), self-administered 401(k), uni-k, or individual 401(k) plan) a proper send-off.  In simple terms, how does one go about terminating your self-administered Solo-K plan. For many, a Solo-K plan is almost like a human life….read more →

Maximum Contributions to Your 401(k) with Less Income!

How do you have maximum contributions to your 401(k) with less income?  Enjoy Part 2 of a blog series on after-tax contributions you can make to your Solo-K plan (also marketed as Uni-K, self-directed 401(k), self-administered 401(k) and Individual 401(k) plans).  From the previous post on this topic, an initial introduction was provided to give a brief explanation as to…read more →

Deadlines for Making Contributions to a Solo-K (Part 2)

In the previous post, we discussed deadlines for making contributions to a Solo-K for a sole proprietorship, an S-Corp and C-Corp.  In Deadlines for Making Contributions to a Solo-K (Part 2), we will examine the deadlines for making contributions to a Solo-K for both a single-member LLC and a multi-member LLC. Single-Member LLC Keep in mind that with a single-member…read more →

UBIT and UDFI and the Implications for Your IRA or 401(k)

UBIT — Unrelated Business Income Taxable UDFI — Unrelated Debt Financed Income Two acronyms for taxes that will probably never affect you, BUT this post is to address UBIT and UDFI and the implications for your IRA or 401(k) if you trigger these events.  Both are important for you to know…and, if applicable, discuss with your tax or legal professional before you…read more →

“Life Cycle” of a Solo 401(k) Plan

Similar to our lives, there is an actual life cycle of a Solo 401(k) plan as well.  And, that is how you want to think about your Solo-K plan.  If you do, it will certainly help cement in your mind how you are to operate your plan moving forward.  It is important that you fully understand this analogy to fully…read more →

Your Solo-K Plan & Independent Contractors

I recently wrote blog series on independent contractors and how they are defined. More importantly, on how knowing the difference between an independent contractor and an employee can have a huge, potential impact on your business and your 401(k) plan. Attorney Chris Combs (Combs, Gottlieb & MacQueen, P.C.) recently  wrote a blog post on “Distinguishing a Contractor from an Employee”….read more →

Your Solo 401(k) Plan — 1099 Contractors? (Part 3)

This is Part 3 of the series on determining whether a worker is an employee or an independent contractor.  In the first post, there were determining questions for an employer which, if they answered YES to ALL of the questions, would appear to indicate that the worker is an independent contractor.  In contrast, in the second post, there were 8…read more →

Your Solo 401(k) Plan — 1099 Contractors? (Part 2)

In the previous blog, we pointed out that there are definite considerations the self-employed individual will face if they are hiring an employee.   For the self-employed business owner with a Solo 401(k) (also marketed as a Uni-K, self-employed 401(k), self-directed 401(k), self-administered 401(k), there are problematic issues related to including the employee in the Solo-K plan.  You got it….it…read more →

Your Solo 401(k) Plan — Employees, 1099 Contractors?

Recently, I wrote a blog on self-employed individuals who may make the decision of hiring an employee or retaining the services of an independent contractor for their business.  Okay, before you tune me out, I understand that many of you are self-employed with no employees and will never have any employees or work with independent contractors.  In fact, you may not…read more →

Employees and Solo(K) Plans — Like Water and Oil

Yes, employees and Solo(K) plans don’t mix.  As much as it is preaching to the choir, one can never talk about this topic enough. Okay, you are self-employed and you have had success with your business.  You believe you have the need to add an employee to assist you with the business, and you give no thought to how this…read more →