Solo 401k

As a result of the  Treasury Department and Internal Revenue Service extending the 2019 tax filing deadline in Notice 2020-18 in response to the Coronavirus Disease for 2019 to July 15, 2020, certain self-employed persons may also delay making 2019 contributions to a self-directed solo 401k:   The deadline to make contributions to a Solo […]

In years prior to 2020, owner-only businesses had to establish / adopt  the self-directed solo 401k by their business year end which was December 31 for most businesses. This all changed for the better, however, for future tax years starting with 2020 due to the passage of the Setting Every Community Up for Retirement Enhancement (SECURE) […]

A QRP stands for Qualified Retirement Plan, and the Solo 401k falls under the qualified retirement plan umbrella designed for businesses with no full-time  common-law employees. These plans allow for salary deferrals and discretionary matching and/or profit sharing contributions.  We are aware of promoter/company (Total Control Financial) that has coined the eQRP terminology which is another way to refer to […]

Can I invest my self-directed solo 401k in  a coffee farm investment in Panama? While the solo 401k rules do allow for investing in alternative investments such as farm that produces crops, the following items should be considered. The investment  by the solo 401k plan will be passive, and the solo 401k participant/trustee does not  […]

On January 20, 2020, the Investment Company Institute (ICI) released their 2019 study regarding Americans view on 401k plans. Here are some of the main findings: Confidence was highest, 81 percent, among individuals who hold DC (401k plans including solo 401k plans fall under this category) accounts or individual retirement accounts (IRAs). 76 percent of Americans […]

IMPORTANT: Recent legislation, known as the Secure Act, does not affect required minimum distributions for the 2019 tax year. You generally have to start taking withdrawals from your solo 401k plan when you reach age 70½. You cannot keep retirement funds in your solo 401k plan indefinitely. Your required minimum distribution is the minimum amount you must withdraw from your solo […]

Are you considering converting your traditional (pretax) solo 401k to a Roth solo 401k (designated Roth account) in 2020? If you are considering this important decision, here are key items to know. The 2020 December 31 Deadline The deadline for a 2020 in-plan conversion is December 31, 2020. This means that the funds and/or assets must be […]

For those with IRAs that contain both pretax and non-deductible IRA contributions, and are planning to just convert the after-tax IRA (non-deductible IRA fund) to a Roth IRA, a solo 401k plan may be a good way to isolate the pretax IRA funds so that just non-deductible IRA funds can be subsequently converted to a […]

In memorandum 201935011 the IRS provides general legal advice on the determination of whether a contribution by an employer to the employer’s qualified retirement plan (note that a solo 401k plan falls under the qualified plan umbrella and allows for employer contributions) has actually been paid to the plan’s trust such that the contribution is deductible […]

Often called DC plans, DC stands for “defined contribution” plan. The Most Popular Types of Defined Contributions Plans The most popular DC plans allow for both employee and employer contributions.  The most popular types of DC plans are 401k plans (note that a solo 401k falls under the defined contribution type too but it is […]