Self-Directed ROTH 401Ks

Does the Manager of a 401(k) LLC Need a Real Estate License?

Similar to an IRA LLC, a 401(k) LLC (some 401(k) trustees elect the LLC feature, some do not) is a structure where an LLC, whose sole member is the 401(k) plan, invests on behalf of the 401(k).  In instances where investments are being made into real estate, the LLC structure can be of great benefit to the Trustee and the…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 →

Deadlines for Making Contributions to a Solo-K (Part 2)

In the previous post, we discussed deadlines for making contributions to a Solo-K for a sole proprietorship, an S-Corp and C-Corp.  In Deadlines for Making Contributions to a Solo-K (Part 2), we will examine the deadlines for making contributions to a Solo-K for both a single-member LLC and a multi-member LLC. Single-Member LLC Keep in mind that with a single-member…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 →

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 →

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 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 →