I have a question in regards to tax rates regarding my Solo 401k investments.
Once I retire and I have full access to withdrawal from my solo 401K, how will rental income from my investment properties be taxed? Will these be taxed at income tax rates or will these be taxed as passive or portfolio income?
Distributions from retirement plans including solo 401(k) plans are taxed at earned income tax rates not capital gain tax rates. Solo 401k funds grow on a tax-defer basis until you start making distributions in which case federal and state taxes will apply.