Solo 401k

Self-Directed IRA Prohibited Transactions: Why $100K in Wine Means a 1099-R Direct Answer: Self-Directed IRA prohibited transactions are governed by IRC Section 4975(c), which bars self-dealing between a self-directed IRA and “disqualified persons” such as the account owner, spouse, parents, and children. Separately, self-directed IRAs may never hold life insurance contracts, S corporation stock, or […]

The Mega Backdoor Roth Solo 401(k) strategy can be an excellent way for self-employed individuals and business owners to move additional retirement funds into a Roth account. The strategy typically involves: Making a voluntary after-tax contribution to the Solo 401(k); and Converting those funds to the Roth Solo 401(k) through an in-plan Roth conversion. But […]

STOP Procrastinating: How to Secure Your 2025 Mega Backdoor Roth Before It’s Too Late Watch: How self-employed business owners can still open a Solo 401k in 2026 and complete a Mega Backdoor Roth conversion for tax year 2025. If you had self-employment income in tax year 2025 and you’ve been thinking about completing a Mega […]

Can a Non-Working Spouse Contribute to a 401k? Watch: Why a non-working spouse can’t piggyback on a Solo 401k — and what to do instead. A married couple may share household income, expenses, and financial goals, but that doesn’t mean both spouses are automatically self-employed in the same business or eligible to contribute to the […]

How MUCH of 1099 Income Can I Put in SOLO 401k? Watch: How much of your 1099 income you can really contribute to a Solo 401k — and how the Mega Backdoor Roth fits in. If you receive income reported on Form 1099-NEC, a Solo 401k can be one of the most powerful ways to […]

Can an Employer Contribute MORE than an Employee to a SOLO 401k? Watch: How employer profit sharing contributions to a Solo 401k can exceed employee contributions — and how the Mega Backdoor Roth fits in. Yes — an employer (profit sharing) contribution can absolutely be greater than an employee contribution in a Solo 401k plan. […]

Can I Invest My 401k in a Private Company? One of the most common questions from self-employed investors is: can I invest my 401k in a private company? The short answer is yes — but only under the right conditions. Your plan must explicitly allow for alternative investments, the transaction must comply with IRS prohibited […]