Stay Calm Roth On- Biden’s Proposed Budget Revives Mega Roth Ban But “No Chance” of Passing
While the Secure Act 2.0 does allow for employer profit sharing (Nonelective) contributions to be made as Roth Solo 401k contributions, for a plan like our Solo 401k plan that allows for Mega Backdoor Roth Solo 401k contributions there is no substantive advantage to making Employer (Nonelective) Solo 401k contributions as Roth Solo 401k contributions: For more on making […]
Question: I was very busy at the end of last year and didn’t set up a Solo 401k by 12/31/2022. Can I still set up a Solo 401k plan in 2023 and make Mega Backdoor Roth contributions? Please note that I own my own business with no employees. I operate my business as a single-member […]
President Biden signed the Consolidated Appropriations Act of 2023 on December 23, 2022. Tucked away in this bills is SECUR 2.0 which mainly impacts qualified plans including 401k plans such as solo 401k plans for the self-employed, and most of the bills provisions don’t go into effect until 2024. For the main items found in […]
Please see the discussion on page 17 of Publication 598 Here is some of the language found in the above publication. Real property debts of qualified organizations. In general, acquisition indebtedness doesn’t include debt incurred by a qualified organization in acquiring or improving any real property. A qualified organization is:1. A qualified retirement plan under section401(a),2. […]
QUESTION: I am a writer, so my self-employment income varies each year. However, I always declare that income on schedule C on my tax return. Is writing conspired self-employment work for opening a solo 401k? ANSWER: Yes writing is considered self-employment activity and thus a solo 40k plan can be established. The IRS actually confirms […]
No balances in IRAs and solo 401k plans (whether owned by the parent or the student) are not included in the financial aid calculation like balances in non-retirement accounts such as checking, savings, CDs, etc. HOWEVER, any contributions to a solo 401k plan or IRA for the tax year of which asset information is gathered are counted. According […]
BREAKING NEWS – New 401k Legislation (dubbed “Secure Act 2.0”) including in 2023 Spending Bill
Mega Backdoor Roth IRA and 401k Bans NOT included in Inflation Reduction Act!
A Starter 401(k) plan, which was introduced on June 15, 2022 by both Reps. Linda Sánchez (D-CA) and Darin LaHood (R-IL) in the Starter-K Act , is not the same as a solo 401k plan. First, the Starter 401(k) plan is not yet effective. Second, a solo 401k plan is for owner-only businesses whereas the […]
