Author Archives: Mark Nolan

DBK Strategy: Max Contributions to a  Solo 401(k) & a Cash Balance Plan (DBP) Direct Answer: Yes, a self-employed business can run the DBK strategy — a Solo 401(k) combined with a cash balance (defined benefit) plan — in the same year. For tax year 2026, the Solo 401(k) overall limit under IRC §415(c) is […]

Solo 401(k) Brokerage Account: Fidelity vs. Schwab for 2026 Direct Answer: A Solo 401(k) brokerage account can be opened at Fidelity, Charles Schwab, Interactive Brokers, or TradeStation, but not at T. Rowe Price for a third-party plan. Fidelity supports direct ACH bank linking for contributions; Schwab requires mailed checks unless a personal Schwab account is […]

2025 Mega Backdoor Roth Deadline: September 15 or October 15, 2026 Direct Answer: The 2025 Mega Backdoor Roth deadline to open a Solo 401(k) and make the voluntary after-tax contribution is September 15, 2026 for S-corporations and partnerships, and October 15, 2026 for sole proprietorships and C-corporations. The overall 2025 contribution limit is $70,000 under […]

Self-Directed IRA Prohibited Transactions: Why $100K in Wine Means a 1099-R Direct Answer: Self-Directed IRA prohibited transactions are governed by IRC Section 4975(c), which bars self-dealing between a self-directed IRA and “disqualified persons” such as the account owner, spouse, parents, and children. Separately, self-directed IRAs may never hold life insurance contracts, S corporation stock, or […]

The Mega Backdoor Roth Solo 401(k) strategy can be an excellent way for self-employed individuals and business owners to move additional retirement funds into a Roth account. The strategy typically involves: Making a voluntary after-tax contribution to the Solo 401(k); and Converting those funds to the Roth Solo 401(k) through an in-plan Roth conversion. But […]