IRS Regulations for 401K Plans

401K Plan Loans — Why 72(p) May be Your Friend

I often receive many inquiries related to loans permitted from a qualified plan, such as a 401K plan, but also including 403(b) and 457 plans.  I always advise that while loan provisions are an attractive feature to a 401K, including a self-directed 401K, it is only my job to educate on what is permissible, and not that they should exercise…read more →

SD 401K Plans — 2013 Contribution Limits

For those of you who have your own self-employed businesses that does not employ any other individual (other than potentially your spouse), keep in mind for your retirement contribution plans that the 401K is not your father’s 401K.  Well, actually, it kind of is, as the IRS doesn’t differentiate between a 401K plan sponsored by an employer with employees vs….read more →

Self-Directed 401K Plans — What the Heck is EGTRRA

Well, before you think that this is going to be really boring….and it very well may be….let’s define what EGTRRA is and why it is your friend. EGTRRA is the acronym for the Economic Growth and Tax Relief Reconciliation Act, and was established in 2001.  Quite simply, EGTRRA defined and permitted the self-employed individual the ability to participate in a 401K…read more →

Self-Directed 401K Plans — A Different Type of 401K?!

Well, yes and no.  So, let’s explain. In the eyes of the IRS, a 401K is a 401K.  There is probably no where in the IRS code where you will see any reference to Self-Directed 401Ks, Solo Ks, I-Ks and so on and so on.  All those terms are more marketing driven than actual IRS terms.  However, the IRS does…read more →