Self-Directed IRA & 401K Basics

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 →

“Life Cycle” of a Solo 401(k) Plan

Similar to our lives, there is an actual life cycle of a Solo 401(k) plan as well.  And, that is how you want to think about your Solo-K plan.  If you do, it will certainly help cement in your mind how you are to operate your plan moving forward.  It is important that you fully understand this analogy to fully…read more →

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 →