Proposed Bill Would Allow the Use of 401k Funds Including Solo 401k to Pay for LTC Insurance

While it is a proposed bill, on October 19, 2020 Senator Patrick Toomey (R-PA) introduced bill number S.4820  (Long-Term Care Affordability Act) which would allow qualified plan account holders including solo 401k plan participants to distribute tax and penalty free up to $2,500 per year adjusted for inflation on a yearly basis from their 401k […]

RMD Life Expectancy Tables Updated for Solo 401k Plans and Self-Directed IRA LLC by IRS Effective 2022

For required minimum distributions (RMDs) beginning January 1, 2022 and after, the IRS on Nov. 6 issued final regulations that update the life expectancy and distribution period tables used for purposes of determining required minimum distributions (RMDs) from IRAs and qualified plans such as solo 401k plans.  The main takeaway is that in 2022 and […]

Applicability of SEC’s Regulation Best Interest (Reg BI) to Self-Directed Solo 401k Plans

If broker dealers give investment and/or rollover advise to IRA or self-directed solo 401k account holders, it is treated as advice to a retail customer and is therefore subject to the SEC’s Regulation Best Interest (Reg BI) requirements. The reason recommendations to solo 401k plan are covered by Reg BI is because a solo 401k […]

The Next SECURE Act Introduced and Referenced as SECURE Act 2.0

While the odds of SECURE Act 2.0 passing in 2020 is slim, it is still worth noting for 2021 as it may pass once the presidential election is finalized. As the name implies, the purpose of the proposed addition to the Act is to build on the the already previously passed SECURE Act from December […]

Solo 401k for Patent Investment

Investing a solo 401k in patents does not appear to be a disallowed investment as referenced below; however, it is prohibited to invest your solo 401k in a patent that you (the solo 401k account holder/participant) is developing because you are considered a disqualified party. See below for more on disqualified parties. However, if the […]