Author Archives: Mark Nolan

Why are Self-Directed Solo 401k contribution limits different for sole proprietors and single owner corporations?

QUESTION: My big question is why are solo 401k contribution limits different for sole proprietors and single owner corporations? I’m a real estate agent who is currently a sole proprietor but is considering incorporating as a business entity.  ANSWER: In response to your question above, the solo 401k contribution limits are the same regardless if […]

In-Kind Roth Solo 401k Conversion of Solo 401k Owned Real Estate with Outstanding Non-Recourse Loan

For a real estate property owned by the pretax solo 401k where there is an outstanding non-recourse loan, the following applies prior to processing the in-kind conversion of the property from the pretax solo 401k to the Roth solo 401k. 1. Have the property appraised by a third-party valuation provider.   2. Then subtract the outstanding non-recourse […]

Yes! Mega Backdoor Roth Solo 401k and Roth IRA 2021/2022 Lives!

Biden announced on December 16, 2021 that Senate will take up Build Back Better in 2022, resulting in the mega backdoor (both the conversion of voluntary after-tax 401k funds including solo 401k to the Roth IRA or the Roth solo 401k as well as the conversion of non-deductible IRA funds to the Roth IRA) not […]

Checkbook Control IRA LLC Recent U. S Tax Court Case – McNulty v. Commissioner, 157 T.C. No. 10 (Nov. 18, 2021)

Filed November 18, 2021 (ANDREW MCNULTY AND DONNA MCNULTY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent), a taxpayer’s self-directed IRA was deemed as involved in a taxable distribution because the tax payer (McNulty) stored at her home the American Eagle gold coins purchased through her IRA owned LLC ( IRA LLC, also known as a […]

The Securities and Exchange Commission (SEC) Reports Enforcement Results for 2021 and Cryptocurrency and SPACs Among the Named Actions

On November 18, 2021 the The Securities and Exchange Commission (SEC) announced a large increase in enforcement actions compared to 2020. Cryptocurrency and SPAC were seen as emerging threats. For instance, the Commission notes that it charged a company for operating an unregistered online digital asset exchange, charged a crypto lending platform and top executives […]