Self-Directed IRA & 401K Basics

Reporting an IRA Rollover to Your Solo 401(k)

A friendly reminder to those of you who executed a rollover from your IRA to your newly-established Solo-K plan (also marketed as a Solo 401(k), Self-Directed 401(k), Self-Administered 401(k), Uni-K, One-Participant 401(k)) during the past tax year (2015).  This reminder deals with reporting to the IRS the rollover of this IRA so that they know it is not a taxable…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 →

Identity Theft and Self-Directed 401(k) Plans?

You see lots of blog posts on 401(k) plans.  You see lots of blogs on identity theft.  You see a lot less (though still a lot) blogs on self-directed 401(k) plans (also, referred to as self-administered 401(k) plans, Solo-K plans, one-participant plans, uni-K plans).  And, you never really see too many blogs on the combined topic of the two.  But,…read more →

IRS Form 5500-EZ — One Participant Plans

For those of you with self-directed 401(k) plans, the IRS Form 5500-EZ may or may not apply to you.  Whether or not you have to file the 5500-EZ for your Solo-K plan is based on whether the value of the plan’s assets exceed $250,000.    It is important to note that while many people believe the 5500-EZ is only for…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 →

2016 IRS Tax Deductions for the Self-Employed

We can always spend a lot of time talking about self-directed 401(k) plans.  It doesn’t matter if  we define it as a one-participant 401(k) plan, a Uni-K, an Individual 401(k), Solo-K, self-directed 401(k), self-administered 401(k)….or any other moniker.  All are acceptable to describe a 401(k) plan for the self-employed individual with no employees. But since many of us are self-employed,…read more →

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 →