Self-Directed 401K Plans

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 →

IRS Rules for Reporting IRA and 401(k) Rollovers

You have created a self-directed IRA or Solo 401(k) plan and you rolled over funds from other retirement plans (e.g., IRA, 401(k), 457, 403(b)) into your new plan.  You are now happy and content that you have a self-directed plan, and are on your way to making investments into non-traditional assets (e.g., real estate).  You also know that as manager…read more →

IRS Increases 401(k) Contribution Limits for 2015

Today the IRS announced cost-of-living adjustments to various retirement plans, including 401(k), 403(b), 457, federal government Thrift Saving and IRA plans.  While the intent of this post is not to regurgitate the news, it should be noted that IRA limitations were unchanged.  However, for those of you who participate in a 401(k) plan or self-directed Solo 401(k) plan, you should…read more →

Administration of Your Solo 401(k)

This is a topic that encompasses many moving parts…and, we are going to address one very small (but important) moving part in this process.  Further, we are going to keep the “concept” brief and to the point without belaboring the discussion. The administration of your Solo 401(k) is important and a responsibility that should be taken seriously.  Many companies emphasize…read more →

Self-Directed IRA and 401(k)s — Non-Traditional Assets

You have done some research on various websites related to self-direction.  It doesn’t matter whether it is a self-directed SEP-IRA, Roth IRA, Traditional IRA or SIMPLE IRA.  Or if it is a 401(k) plan, which is also marketed as Uni-K, Solo-K, self-directed  401(k) and self-administered 401(k), one basic tenet is still in play…they can all be self-directed.  In learning more…read more →

401(k) Loans and Prohibited Transactions

Self-directed IRA and Solo 401(k) plans (also known as Uni-K, self-directed 401(k), self-administered 401(k) and individual 401(k) plans) have strict rules imposed upon the plans to not engage in IRS and DOL Prohibited Transactions.  These rules are specific in their intent and there are significant penalties associated with a plan participating in self-dealing and other types of specifically prohibited transactions. However, through…read more →

401(k) Contribution Limits

401(k) Contribution Limits

Self-directed 401(k) contribution limits are the same as any other 401(k) plan.  As you continue through your fiscal year, keep in mind the high 401(k) contribution limits that are available to you and your plan, and plan accordingly.  Also, be cognizant of the fact that employee elective deferrals must be made by December 31 of the year in which the…read more →