Self-Directed IRA & 401K Basics

Beneficiary Mistakes — Self-Directed 401(k) or IRA (Part 2)

In the previous post, we introduced three potential beneficiary designation mistakes.  In this post, we will point out a few more. Don’t Name Your Kid! This is not meant as harsh as it sounds.  As with other considerations, this relates to the issue of age.  There are WAAAAY too many people who identify their minor children as either a primary…read more →

Roth Solo 401(k)

So-called Roth Solo 401(k) plans are becoming more popular.  The reason I say “so-called” is that it really a marketing term that seems to suggest that it is a “different” or “special” type of 401(k) plan.  The promoters often suggest that they “have” this new plan.  Is the plan “different”….well, yes.  “Special”…definitely.  But, it is “different” and “special” because of what they allow you to do, not…read more →

Self-Employed? SEP vs. Solo 401(k) (Part 4)

In today’s post, we are going to try to save you some money…..yay!!  Here are two additional reasons why a qualifying candidate should seriously consider the Solo 401(k) over the SEP-IRA….and, it may just save you some money as well. No IRA Custodian Fees Yes, a great benefit of the Solo 401(k) is that is not required to be held through a…read more →

Self-Employed? SEP vs. Solo 401(k) (Part 3)

In this post, we are going to expand on a couple more advantages of the Solo 401(k) over the SEP-IRA.  However, while we are not spending significant time on these two benefits, don’t be fooled into thinking they are not important.  Depending on your interest in how you make your contributions and your investment strategies, these two benefits are important for you understand….read more →

Self-Employed? SEP vs. Solo 401(k) (Part 2)

Solo 401(k) Participant Loans There are many financial planners who look at 401(k) participant loans with disdain.  They may advise that a participant never take a loan from their 401(k) plan.  In fact, many participants themselves may not want to take out participant loans. But, there is no doubt that the ability to access participant loans from a 401(k) plan…read more →

401(k) Rollovers — This Isn’t Rocket Science!

IRS rollover rules can be complicated and confusing.  Confusing especially when you do not do them all of the time.  But, it is a little bit more disappointing when a very large self-directed IRA custodian hangs someone out for 2 months when they can’t figure out what to do.  What even makes this more laughable is that the large self-directed…read more →

Checkbook Control of Your 401(k) — A Different Option?

As you know, wherever you house your 401(k), you most likely are wanting checkbook control of the plan’s funds as Trustee of the plan.  You already have that, but is there a different approach that may be more attractive to you?   Maybe having a separate “checkbook” for each participant account (e.g., Roth, Pre-Tax Elective Deferral Accounts)?  Is there a reason why…read more →

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 →

IRS Extends Program for Late Filers of 401(k) Plans

You have probably seen a significant number of blogs on this site related to IRS requirements for individual 401(k) plans that must file an annual 5500-EZ.  This requirement is in place due to Fair Market Value (assets in the plan that are valued in excess of $250,000) or as a result of terminating their business (and, therefore, the 401(k) plan).  Hopefully, pe0ple take…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 →