Author Archives: Mark Nolan

Roth IRA LLC Distribution Rule in Year the Owner Turns age 59 1/2

QUESTION:   I turn 59 1/2 on on October 17 of this year. I’ve had my Roth IRA LLC for over 5 years now. I now want to distribute the earning is my Roth IRA LLC without being subject to taxes and the 10% early distribution penalty.  Do I have to wait until I turn 59 […]

Alimony Payments for Making IRA Contributions

Eligible Compensation Compensation for Traditional and Roth IRA contribution eligibility generally is income a person earns from working. Compensation is defined in IRC Sec. 219(f)(1), Treasury regulations, and IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). The following types of income are considered eligible compensation for IRA contributions. • Salary • Wages • Tips […]

Top 7 Solo 401k Opening Tips-What to Know

Unlike an IRA where you are not required to be self-employed to open an IRA, a solo 401k requires the individual to be self-employed because a solo 401k is a qualified plan not an IRA. To that end, the solo 401k rules are more complex than the IRA rules; however, there are advantages to solo […]

Income Not Considered Self-Employment Income for Opening or Making Annual Solo 401k Contributions

The following income is not considered earned income from self-employment; therefore, it does not qualify for participating in a solo 401k plan or for making annual contributions to a solo 401k plan. Alimony Pay stemming from divorce Earnings and profits from property and investments, such as rental income, interest income, and dividend income Deferred compensation […]

How to Transfer an IRA Including a SEP IRA From Merrill Lynch to a Self-Directed Solo 401k Plan

While the Roth IRA rules do not allow for the transfer to a qualified plan including a self-directed solo 401k plan, this same rule does not apply to pretax funds held in a traditional IRA or a SEP IRA. As a result, it is no uncommon to fund a solo 401k plan by transferring / […]