Tag Archives: Roth IRA

Mega Backdoor Roth IRA & Solo 401k is under attack…Call your Senator & Representative!

UPDATE: Great News! The mega backdoor will not be banned for 2022 (LEARN MORE HERE) as President Biden announced on December 16 that the Build Back Better bill won’t get passed in 2021so you just need to adopt the solo 401k plan by December 31, 2021 so that you can make all solo 401k contribution types including the voluntary […]

IRA Conversion & IRA Recharacterizations Differences

The IRA conversion and IRA recharacterizing rules can be easily confused. Following are the differences between these two IRA transactions. What is a conversion? A conversion occurs when IRA funds including assets (e.g., real estate, IRA owned LLC, notes, and even equities) are moved from a Traditional IRA, SIMPLE IRA, and SEP IRA to a […]

Making Roth Solo 401k Contributions

A Roth Solo 401k is not a Roth IRA First, a Roth solo 401k (a.k.a. designated Roth 401k) is not the same as a Roth IRA. This is a common point of confusion.  Even though Roth contributions both to the Roth solo 401k and the Roth IRA go in on after-tax basis and the gains […]

Congress Plans to Make Retirement Plan Reform in 2021

Last week The U.S. Senate Finance Committee had a hearing to discuss plan changes in 2021 for retirement plans including 401k, solo 401k, 457b and 403b. Here are some of the possible changes discussed: Allow for higher catch-up contributions for those age 60 or older. Increasing the the required minimum distribution (RMD) age from 72 […]

Is the IRA LLC Subject to an Annual Tax Return?

QUESTION: Do I have to file an annual tax return for my IRA LLC? ANSWER:  It depends on certain factors such as the following: LLC Entity Annual Report: Virtually all states require that an annual report for the LLC is filed with the Secretary of State.  LLC Entity State Income Tax Return: Some states require […]