Posts Tagged "401K loans"

Self-Employed? SEP vs. Solo 401(k) (Part 2)

Solo 401(k) Participant Loans There are many financial planners who look at 401(k) participant loans with disdain.  They may advise that a participant never take a loan from their 401(k) plan.  In fact, many participants themselves may not want to take out participant loans. But, there is no doubt that the ability to access participant loans from a 401(k) plan…read more →

401(k) Loans and Prohibited Transactions

Self-directed IRA and Solo 401(k) plans (also known as Uni-K, self-directed 401(k), self-administered 401(k) and individual 401(k) plans) have strict rules imposed upon the plans to not engage in IRS and DOL Prohibited Transactions.  These rules are specific in their intent and there are significant penalties associated with a plan participating in self-dealing and other types of specifically prohibited transactions. However, through…read more →

401(k) Loans

Ah, the double-edged sword of 401(k) loans.  Most of us love them…even if it is only for the freedom we feel that they are available to us.  However, the double-edge of 401(k) loans is that while we have the freedom to take out the 401(k) loans, there is also the responsibility to repay the loan based on the requirements outlined…read more →

Solo 401(k) and SEP IRA

For those that are interested in self-directed retirement plans, it is easy to understand some of the confusion that exists in what plans the individual qualifies for and what type of retirement plan should be established.  In this post, we will address a solo 401(k)and SEP IRA. A self-employed individual who will consider a solo 401K(k)and SEP IRA may initially believe the SEP IRA…read more →

Solo 401(k) Plans — You Gotta Be Self-Employed!

Well, duh! While I’ve done a post or two in the past on this and it really is not a complicated matter…or shouldn’t be…it is always good to re-visit the subject matter. Why?  Well, when people are inquiring about self-directed plans, they understand that a 401(k) plan has some inherent benefits over an IRA.  Some of the benefits of the…read more →

What is a Self-Directed IRA – The Proverbial Dog?! (Part 2)

This is Part 2 of our “Home Alone” tribute and your “w00f woof” IRA.  You may remember from the first post that we outlined that while an IRA is never a bad thing, compared to a 401K it is like dog food….thus, woof woof. That being said, what is a second reason of why the 401K is a clearly more…read more →

401K Plan Loans — Why 72(p) May be Your Friend

I often receive many inquiries related to loans permitted from a qualified plan, such as a 401K plan, but also including 403(b) and 457 plans.  I always advise that while loan provisions are an attractive feature to a 401K, including a self-directed 401K, it is only my job to educate on what is permissible, and not that they should exercise…read more →

Did the IRS Actually Make Something Easier to Understand (please say it is so!)

Probably for anyone who has ever participated in a “traditional” 401K plan at their company OR are participating in a self-directed 401K, they know that 401K plan documents typically provide participants the ability to take out loan provisions from the plan. As a quick overview, typically such loans must be paid back based on the following IRS regulations (Loans from a…read more →