Self-Directed IRA & 401K Basics

Why You Should Strongly Consider an IRA Trust

There are a few reasons why you should strongly consider an IRA Trust.  Okay, let’s take the mystery out of this equation:  for the typical client establishing the IRA Trust, to them it really won’t look that much different than an IRA LLC.  Both will allow you to invest into non-traditional assets (e.g., real estate), and both will permit you…read more →

Taking a Distribution from Your Solo-K Tax Free?!

And, we aren’t talking about a Roth distribution after age 59 1/2!! Taking a distribution from your Solo-K tax free is possible. Now these plans (also marketed as Uni-K, Individual 401(k), self-directed 401(k) and self-administered 401(k) plans) are just like any 401(k) plan…which, generally, means that this might not be possible. Ah, the first thing you think: “The person has…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 →

Super Charged 401(k) Contributions for Alternative Investments

When I have written blog posts, I have rarely used “hype” words.  You know them:  “super”, “new”, “improved”, “secret”, “top 10 reasons”, etc.   We know why bloggers use them, but many times we feel suckered when the content of the blog doesn’t live up to the hype of the blog title.  Well, I must admit that I am going…read more →

Self-Directed 401(k) Beneficiary Form

All the plan documents you receive for your Solo-K plan (also referred to as a Uni-K, Self-Directed 401(k), Self-Administered 401(k), Individual 401(k) Plan) are important in their own right.  The self-directed 401(k) beneficiary form is no exception.  In the concern of making sure all documents are being executed for the plan, some Trustees forget to execute the self-directed 401(k) beneficiary…read more →

Hobby OR Self-Employment?

Anyone who has ever spoke to me knows that I am an unabashed fan of the Solo-K plan (also known as a Uni-K, self-directed 401(k), self-administered 401(k).  Now, my support of the 401(k) doesn’t mean that anyone can establish the plan.  One must be self-employed in some capacity and qualify for the plan….as one might imagine, there must be either…read more →

Deadlines for Making Contributions to a Solo-K

Deadlines for making contributions to a Solo-K can, at times, appear to be in conflict with an employee who participates in a 401(k) plan as a W-2 participant.  For example, for those of us who have been (or still are) W-2 employees,  imagine if we went up to our employer on January 4 of the following year and said, “hey,…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 →

IRA LLCs and 401(k) Plans — Where to Hold Precious Metals?

Over the years, this has been a much-discussed and frequently debated topic for those individuals who wish to hold precious metals in their IRA LLC or 401(k) plan.  Must you only use a depository?  Can you use a bank?  Can I have them at my home? Historically, it depends on who you ask?  Here’s the typical lines: Coin Depository — You…read more →

IRA Rollovers to a Solo-K

For anyone who established their Solo 401(k) plan in this current year and rolled over IRA funds into their individual 401(k) plan….this is for you. You established your self-administered, Solo 401(k) plan.  You may have set up your plan up in January or possibly setting it up at the end of the year.  You may have set up your plan…read more →