Solo 401k Value Under $250,000 as of 12/31 but Over $250,000 During the Year

BACKGROUND:

Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan applies to one-participant or “owner-only”  plans if the plan has assets of $250,000 or more at the end of the plan year.  Plans subject to the Form 5500-ez filing requirement include solo 401k plans and defined benefit plans.

QUESTION:

Please let me know if the form 5500-ez is still needed as the total amount is now below $250,000. So is it needed since at one point in 2021 the value of my solo 401k plan was over $250,000?

ANSWER:

A Form 5500-EZ is not required to be filed  if the balance of the solo 401k was under $250,000 during the plan year so as of 12/31.  It does not matter if the solo 401k was over $250,000 during the year prior to 12/31.
Note: If the solo 401k was closed during the year, a final Form 5500-EZ is required to be filed regardless if the value of the solo 401k plan was under $250,000 at time of closing or during the year.
For Form 5500-ez FAQs click here.

UBreakIFix FREE Franchise Report with **REAL** Cost to Open | UBreakIFix Franchise Review | UBreakIFix Franchise Fee | Use Your 401k to Start a UBreakIFix Franchise Business

FREE Franchise Report with **REAL** Cost to Open

How much does it cost to open a UBreakIFix Franchise? [Updated 2022]

UBreakIFix Franchise Review

Are you considering opening a UBreakIFix Franchise?  If so, it will be essential to understand the costs & fees and how you will pay for those expenses.  This article highlights some key expenses listed in the 2019 Franchise Disclosure Document.  It also describes how you can fund those expenses using your retirement funds without paying tax or penalties.

Recent ROBS 401K Webinars:

Book a Call with Expert

2022 UBreakIFix Franchise Cost | UBreakIFix Franchise Fee

According to the 2019 UBreakIFix FDD Franchise Disclosure Document, the cost to start a UBreakIFix Franchise will include the following if you are opening your first single location:

  • Total Investment: The total investment necessary to begin operation of a “UBREAKIFIX” franchise ranges from $55,400 – $236,250, excluding land.
  • Initial Fees:
    • Initial franchise fee: $40,000
    • Initial training fee: $12,500
    • If you have at least 2 years of prior experience as a manager or assistant manager at a UBreakIFix store, you be able to pay eligible to pay an initial franchise fee of $25,000 and not pay an initial training fee.
  • Veteran Discount: UBreakIFix offers qualified veterans a 20% discount on the initial franchise fee.
  • Royalty Fees: 7% of Non-recommerce Revenue; 4% of Recommerce Revenue
  • Financing: Financing may be available if you are an existing franchisee and are opening a second or subsequent  UBREAKIFIX business.

How can My Solo 401k Financial help me fund a UBreakIFix Franchise?

My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing including UBreakIFix franchises.  We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.

Obtain an SBA Loan for a UBreakIFix Franchise

Use Your 401k to Start a UBreakIFix Franchise Business

If you an aspiring entrepreneur looking for financing to open a UBreakIFix franchise, you may want to consider using our 401k Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of Using Your 401k to Start a Business

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in approximately 15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Using Your 401k to Start a Business – Process

Step 1: File Articles of Incorporation with the Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the C-corporation.

Step 4: The C-corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Using Your 401k to Start a Business – Resources

2022 Code Ninjas FREE Franchise Report with **REAL** Cost to Open | Code Ninjas Franchise Fee | Use Your 401k to Start a Code Ninjas Franchise Business | SBA Business Loan

FREE Franchise Report with **REAL** Cost to Open

Recent ROBS 401K Webinars:

Book a Call with Expert

2022 Code Ninjas Franchise Cost

How much does it cost to open a Code Ninjas Franchise? [Updated 2022]

Are you considering opening a Code Ninjas Franchise?  If so, it will be essential to understand the costs & fees and how you will pay for those expenses.  This article highlights some key expenses to start a Code Ninjas Franchise.  It also describes how you can fund those expenses using an SBA Business Loan and/or your retirement funds without paying tax or penalties.

The cost to start a Code Ninjas Franchise will include the following:

  • Total Investment: The total investment necessary to begin operation of a “Code Ninjas Franchise” franchise ranges from $118,640 to $387,270.
  • Initial Fees:
    • Initial franchise fee: $29,000
  • Royalty Fees: 6%

How can My Solo 401k Financial help me fund a Code Ninjas Franchise?

My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing.  We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.

Obtain an SBA Loan for a Code Ninjas Franchise

Use Your 401k to Start a Code Ninjas Franchise

If you an aspiring entrepreneur looking for financing to open a Code Ninjas Franchise, you may want to consider using our ROBS 401K Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of Using Your 401k to Start a Business

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in approximately 15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Using Your 401k to Start a Business – Process

Step 1: File Articles of Incorporation with the Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the C-corporation.

Step 4: The C-corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Using Your 401k to Start a Business – Resources

2022 FREE Franchise Report with **REAL** Cost to Open | CycleBar Franchise Fee | Use Your 401k to Start a CycleBar Franchise Business | SBA Business Loan

Recent ROBS 401K Webinars:

Book a Call with Expert

2022 CycleBar Franchise Cost

How much does it cost to open a CycleBar Franchise? [Updated 2022]

Are you considering opening a CycleBar Franchise?  If so, it will be essential to understand the costs & fees and how you will pay for those expenses.  This article highlights some key expenses to start a CycleBar Franchise.  It also describes how you can fund those expenses using an SBA Business Loan and/or your retirement funds without paying tax or penalties.

The cost to start a CycleBar Franchise will include the following:

  • Total Investment: The total investment necessary to begin operation of a “CycleBar Franchise” franchise ranges from $319,150 – $497,200.
  • Initial Fees:
    • Initial franchise fee: $60,000
  • Royalty Fees: 7%

FREE Franchise Report with **REAL** Cost to Open

How can My Solo 401k Financial help me fund a CycleBar Franchise?

My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing.  We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.

Obtain an SBA Loan for a CycleBar Franchise

Use Your 401k to Start a CycleBar Franchise

If you an aspiring entrepreneur looking for financing to open a CycleBar Franchise, you may want to consider using our ROBS 401K Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of Using Your 401k to Start a Business

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in approximately 15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Using Your 401k to Start a Business – Process

Step 1: File Articles of Incorporation with the Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the C-corporation.

Step 4: The C-corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Using Your 401k to Start a Business – Resources

Deka FREE Franchise Report with **REAL** Cost to Open | Deka Lash Franchise Fee | Use Your 401k to Start a Deka Lash Franchise Business | SBA Business Loan

FREE Franchise Report with **REAL** Cost to Open

Recent ROBS 401K Webinars:

Book a Call with Expert

How much does it cost to open a Deka Lash Franchise? [Updated 2022]

Deka Lash Franchise Review

Are you considering opening a Deka Lash Franchise?  If so, it will be essential to understand the costs & fees and how you will pay for those expenses.  This article highlights some key expenses listed in the 2019 Franchise Disclosure Document.  It also describes how you can fund those expenses using an SBA Business Loan and/or your retirement funds without paying tax or penalties.

2022 Deka Lash Franchise Cost | Deka Lash Franchise Fee

According to the 2019 Deka Lash FDD Franchise Disclosure Document, the cost to start a Deka Lash Franchise will include the following if you are opening your first single location:

  • Total Investment: The total investment necessary to begin operation of a “DEKA LASH” franchise ranges from $179,251 – $426,491.
  • Initial Fees:
    • Initial franchise fee: $51,900
  • Veteran Discount: Deka Lash offers qualified veterans a 10% discount on the initial franchise fee.
  • Royalty Fees: 6% of Gross Studio Sales or $500 per month, whichever is greater.

How can My Solo 401k Financial help me fund a Deka Lash Franchise?

My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing including Deka Lash franchises.  We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.

Obtain an SBA Loan for a Deka Lash Franchise

Use Your 401k to Start a Deka Lash Franchise Business

If you an aspiring entrepreneur looking for financing to open a Deka Lash franchise, you may want to consider using our ROBS 401K Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of Using Your 401k to Start a Business

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in approximately 15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Using Your 401k to Start a Business – Process

Step 1: File Articles of Incorporation with the Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the C-corporation.

Step 4: The C-corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Using Your 401k to Start a Business – Resources

2022 F45 FREE Franchise Report with **REAL** Cost to Open | F45 Franchise Fee | Use Your 401k to Start a F45 Franchise Business | SBA Business Loan

FREE Franchise Report with **REAL** Cost to Open

Recent ROBS 401K Webinars:

Book a Call with Expert

2022 F45 Franchise Cost

How much does it cost to open a F45 Franchise? [Updated 2022]

Are you considering opening a F45 Franchise?  If so, it will be essential to understand the costs & fees and how you will pay for those expenses.  This article highlights some key expenses to start a F45 Franchise.  It also describes how you can fund those expenses using an SBA Business Loan and/or your retirement funds without paying tax or penalties.

The cost to start a F45 Franchise will include the following:

  • Total Investment: The total investment necessary to begin operation of a “F45 Franchise” franchise ranges from $227,000 – $312,000.
  • Initial Fees:
    • Initial franchise fee: $50,000
  • Royalty Fees: The greater of 7% of Gross Sales or $2,500 per month

How can My Solo 401k Financial help me fund a F45 Franchise?

My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing.  We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.

Obtain an SBA Loan for a F45 Franchise

Use Your 401k to Start a F45 Franchise

If you an aspiring entrepreneur looking for financing to open a F45 Franchise, you may want to consider using our ROBS 401K Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of Using Your 401k to Start a Business

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in approximately 15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Using Your 401k to Start a Business – Process

Step 1: File Articles of Incorporation with the Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the C-corporation.

Step 4: The C-corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Using Your 401k to Start a Business – Resources

2022 Orangetheory Franchise FREE Franchise Report with **REAL** Cost to Open | Orangetheory Franchise Fee | Use Your 401k to Start a Orangetheory Franchise Business | SBA Business Loan

FREE Franchise Report with **REAL** Cost to Open

Recent ROBS 401K Webinars:

Book a Call with Expert

2022 Orangetheory Franchise Cost

How much does it cost to open a Orangetheory Franchise? [Updated 2022]

Are you considering opening a Orangetheory Franchise?  If so, it will be essential to understand the costs & fees and how you will pay for those expenses.  This article highlights some key expenses to start a Orangetheory Franchise.  It also describes how you can fund those expenses using an SBA Business Loan and/or your retirement funds without paying tax or penalties.

The cost to start a Orangetheory Franchise will include the following:

  • Total Investment: The total investment necessary to begin operation of a “Orangetheory Franchise” franchise ranges from $563,529 – $994,121.
  • Initial Fees:
    • Initial franchise fee: $59,950
  • Royalty Fees: 8%

How can My Solo 401k Financial help me fund a Orangetheory Franchise?

My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing.  We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.

Obtain an SBA Loan for a Orangetheory Franchise

Use Your 401k to Start a Orangetheory Franchise

If you an aspiring entrepreneur looking for financing to open a Orangetheory Franchise, you may want to consider using our ROBS 401K Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of Using Your 401k to Start a Business

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in approximately 15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Using Your 401k to Start a Business – Process

Step 1: File Articles of Incorporation with the Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the C-corporation.

Step 4: The C-corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Using Your 401k to Start a Business – Resources

Learn How Crypto Solo 401k Provides Access to Many More Exchanges vs. Crypto IRA and Why this Matters

Harvard Law Attorney George Blower reviews how a Crypto Solo 401k offers access to many cryptocurrency exchanges and the related advantages of a Crypto Solo 401k over a Crypto IRA.

Crypto IRA Requires Third Party Trustee

  • IRS Rules require that all IRA accounts be administered by a third-party bank or trust company.
  • For the Crypto IRA investor this effectively means that the Crypto IRA provider will have access to your account. 
  • If the Crypto IRA provider is hacked, this could put your crypto retirement holdings at risk

Business Owner May Serve as Trustee of Crypto Solo 401k

  • Per IRS, the trustee of of a 401k plan may include the business owner (i.e. you).
  • For the Crypto Solo 401k investor this means that the Crypto Solo 401k provider will NOT have access to your account. 

Advantage of Crypto Solo 401k vs Crypto IRA – Choose Your Own Exchange

  • Crypto IRA providers typically offer only one designated platform or exchange
  • With Crypto Solo 401k, access to many different exchanges including DeFi

Why it is important to have access to many Crypto Exchanges?

With access to many cryptocurrency exchanges, the Crypto Solo 401k can enjoy additional benefits including:

  • Security
  • More Crypto Storage Options
  • Lower Trading Fees
  • Access to More Coins
  • Plus additional benefits generally of a Crypto Solo 401k including Higher Tax Deductions, Higher Roth Contribution Limits & Alternative Investment Options

Continue the discussion in our My Community where our Owners host a daily LIVE webinar where you can ask questions and you can post questions in our forums: Cryptocurrency Forum

Rollover as Business Startup (ROBS 401k) PROS and CONS – Q&A Webinar

We hosted a live webinar on our My Community to discuss the pros and cons of using a rollover as business startup (ROBS 401K) to fund the startup or purchase of a business with retirement funds.

How does a ROBS 401K work?

A rollover as business startup (ROBS) transaction allows you to use your retirement money to start or buy a business without paying taxes or penalties.

Key ROBS requirements

  • Use retirement funds in a former employer plan and/or non-Roth IRA
  • Use the funds to start or buy an active business (i.e. operating company providing goods and/or services)
  • C-corporation
  • Bona fide employee (e.g. 1000 hours per year)

ROBS 401k Process

  • Step 1: Incorporate C-corporation
  • Step 2: C-corporation sponsors 401k plan
  • Step 3: Rollover funds to 401k
  • Step 4: Invest 401k funds in the stock of the C-corporation
  • Step 5: C-corporation may use the funds for legitimate business purposes including to buy or start a business

ROBS 401K PROS

#1 Invest Retirement Funds without incurring taxes or penalties 

  • Invest all eligible retirement funds (e.g. former employer plan and/or non-Roth IRA):
    • No taxes
    • No Penalties

#2 Start or buy a business “debt-free”

  • ROBS 401K investment structured as a stock purchase:
    • No loan payments required
    • Keep funds in the business to grow business

#3 No credit score, guarantee or underwriting requirements

  • A ROBS 401k is not a loan.
    • No credit score requirement
    • No underwriting
    • No personal guarantee

#4 Access funds quickly

  • With no underwriting or approval process, funds can be accessed relatively quickly:
    • Typically access funds in about 3 weeks

#5 Use funds as down payment on a loan

  • The proceeds of a ROBS 401K investment may be used as a downpayment to qualify for an SBA or other business loan.
    • Leverage funds to buy a bigger business

#6 Invest your retirement funds in yourself

  • With a ROBS 401k, your retirement funds are invested in your own business:
    • Instead of Wall Street stock investments, invest in business that you have complete control over
    • Invest in what you know

ROBS 401K CONS

#1 You may lose your business and your retirement savings

  • If the business that is funded with your retirement funds fails, you may also ultimately lose all or a significant part of the retirement funds invested in the business.

#2 Must operate the business as a C-corp

  • As long as you own part of the business via the ROBS 401K, the business must be operated as a C-corporation.

#3 Must maintain a 401K plan

  • The ROBS C-corp must maintain a 401k plan:
    • Offer to eligible employees
    • Annual 5500 filing
    • Annual valuation, etc.

Continue the discussion in our My Community where our Owners host a daily LIVE webinar where you can ask questions and you can post questions in our forums: ROBS 401K Business Financing forum

The SECURE Act & the 2022 IRS Proposed RMD Regulations Results in The End of the Stretch IRA for Most Non-Spouse Beneficiaries

With the passage of the 2019 SECURE Act and the proposed regulations regarding RMDs that were published earlier this year in 2022,  the  so-called “stretch” IRA  has been officially eliminated in most cases when the beneficiary is not the spouse.  As a result, most non-spouse IRA beneficiaries are now required to empty their inherited IRAs in 10 years resulting in the collection of taxes much quicker by the Treasury Department. 

Old Rules Vs. New Rules

Prior to ne new rules, certain non-spouse beneficiaries (e.g., children and grandchildren) could stretch the IRA beneficiary disruptions over their life expectancy. For example, over 50 or 60 years depending on how your the child was; thereby, delaying having to pay taxes as quickly.

Under the new rules, the Department of the Treasury is effectively colleting the taxes due ono the beneficiary IRA much quicker by shortening the distribution period from the life expectancy of the beneficiary to 10 years.

The new proposed Treasury RMD rules impact both IRAs and qualified plans such as 401k plans including solo 401k plans.

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