Self-Directed IRA & 401K Basics

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 →

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 →

Application of One-Per-Year Limit on IRA Rollovers

Well, you didn’t necessarily ask for it, but I am going to give it to you anyways.  If you are an IRA account owner who, let’s say, likes to execute IRA rollovers, you want to pay particular attention to this. Now, mind you, I always encourage folks to execute direct transfers between IRS-approved custodians.  I understand why a certain element…read more →

Inherited IRA Mistakes

This post is not related to an IRA that identifies one spouse as a beneficiary of their spouses IRA.  This is merely intended for any person who inherits an IRA from another individual and they are a non-spousal beneficiary. IRA rules for non-spousal beneficiaries can be extremely complicated, even for the individuals who are trying to do everything correctly.  And, while…read more →

IRA Transfers and Rollovers

At this time of year, many people may consider executing IRA transfers and rollovers.  It is always good to provide a brief review of this process…and we will keep it brief. There are two primary means by which people move IRA funds to another IRA, whether it is a self-directed IRA or not.  That is either through a direct Trustee-to-Trustee…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 →