Author Archives: Mark Nolan

Maxing Out My Solo 401k in Addition to Fortune 500 Company 401k Plan

The 401(k) regulations allow for contributions to multiple 401(k) plans. This is especially advantageous for those who have a full-time job and participate in that employer’s 401(k), and those who also have a self-employed business and participate in that self-employed business solo 401(k). A solo 401(k) is made up of employee and employer contributions. The employee […]

Self-Directed Solo 401k Roth Solo 401k Recharacterization Question

QUESTION: I am thinking about doing an in plan Roth 401k conversion of the remaining funds in the pre-tax part of my solo 401k plan (around $300K). I am with my tax advisor now and we are questioning if this could be recharacterized (undone) later in 2019 when my tax situation becomes clearer. ANSWER: That is a […]

Co-invest with my 401k in a newly formed LLC

QUESTION: My intent is to co-invest with my 401k in newly formed LLC, to be capitalized 24% by 401k and 76% by me. This is to enable funding of land and the design and build of building for purposes of lease to third parties and income generation. Can you explain any particular requirements for such […]

Rollovers as Business Start-Ups (ROBS) is not a Participant 401k Loan

When you take advantage of a ROBS transaction to rollover your 401k or other retirement funds to start a new business (or finance an existing business), it is not the same as taking a loan/borrowing from your 401k funds. Instead, you are investing your retirement savings in your own business by directing the 401k to by employer […]

Investing Retirement Funds in Own Business vs. a Third-Party Business

The retirement account regulations allow business owners or aspiring entrepreneurs to invest their own retirement funds in their own business (known as an active investment) or a third-party business (commonly referred to as a passive investment). Both of these investment types will not subject the retirement account holder to taxes or penalties as long as […]

Invest Self-Directed Solo 401k in Physical Real Estate and Land

A self-directed solo 401k may own/invest in physical real estate (e.g., family homes, apartments, condominiums, commercial buildings and land), provided the 401k investment and prohibited transaction rules are satisfied. The 401k real estate investment rules are, for the most part, straight forward and pretty easy to follow. Following is a list of some of the 401k real […]

Real Estate Solo 401k In-Kind Distribution Rules and Reporting

While solo 401k distributions are not mandatory until the solo 401k owner reaches age 70 1/2 (the technical IRS lingo is Required Minimum Distributions), it is not well known that solo 401k distributions can also be made in the form of a hard asset (for example,  real-estate) instead of cash.  In other words, instead of receiving […]

Can I Use a Stock Bonus Plan Like a ROBS 401k (Business Financing 401k)

QUESTION: I have a former employer 401k and old IRA that I would like to use to for the 401k business funding structure. Can I rollover my 401k and IRA to a stocks bonus plan and then use the stock bonus plan for the 401k business funding structure? ANSWER: No. The 401k business funding structure, referred […]

Solo 401k In-Kind Distribution Tax Obligations vs Direct Rollover

QUESTION: I’m closing down my self-employed business and then my solo 401k. What are the next steps for this? If I wanted to take a full distribution and not set up an IRA LLC, how would that work and what would be my tax obligations? I have money in the solo 401k account at the bank as […]

The Once-Per-Year IRA Rollover Rule Quick Guide

Here is a quick guide to help you understand the new once-per-year rollover rule and how it affects your IRA rollover plans. Don’t process an IRA rollover IF: You already made one tax-free rollover from an IRA to another (or the same) IRA within the last 12 months. Key Items: The once-per year rule means […]

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