Active vs. passive income
What is the difference between active, or earned, income and passive income? How can I determine if I have earned income? Can I contribute my investment income to the Solo 401k? Active, or earned, income is earned from your business activity. Passive income comes from investments that you hold. Active/earned income Your eligibility for the Solo […]
Contributing to Solo 401k from multiple companies
I want to be able to contribute to my Solo 401k from multiple companies to maximize the contribution potential. How can I do this? Contributions to your Solo 401k can only be made from the adopting business of the plan. Check your plan documents for which adopting business is listed. If you have multiple companies, […]
Having a current employer’s 401k plan and a Solo 401k plan
Does my current employer’s 401k plan have any effect on my Solo 401k plan? Will my contribution limit be affected? The employee contribution maximum is per person, not per plan. In other words, your ability to make the maximum employee contribution to your Solo 401k is affected by the employee contribution you have made to […]
Does my Solo 401k need to be registered into public record?
The bank says I have to register my Solo 401k trust into public record. What do I do? When opening a trust checking account, some clients have been told by their banks, “Your trust needs to be registered with [the state/government organization].” While this may be a bank’s policy (and an uncommon one), it is […]