How do I value real estate in my Solo 401k plan?
My Solo 401k plan owns real estate property. How do I value that? Answer: The value of each property will need to be based on other properties in the area (real estate comps), or a third-party appraisal can be obtained. Please note: if you are taking an in-kind distribution or in-kind conversion of the property […]
What happens with the Solo 401k when the sponsoring business changes?
What happens if the business that sponsors a Solo 401k change from a sole proprietorship to an LLC or corporation? Jessica discusses the required changes in this Solo 401k Quick Tip video.
Do Roth contributions need to come from business revenue?
Answer: Yes. All your contributions must come from your business profits. You should create a separate designated Roth account for ease of tracking your Roth balance and use the appropriate form to document your contributions. Forms can be accessed here: Forms to Administer Solo 401k Plan
Hands off my IRA
Many Americans keep their wealth, or a large portion of it, in their retirement account. It’s a great way to build your retirement “nest egg” in a tax-deferred vehicle, and if you make wise investment choice, allow your investment returns compound, keeping the money moving, you can reach retirement with millions. It’s been my honor […]
Penalties for late filing of Form 5500-EZ
Under the SECURE Act, penalties have increased substantially. Effective for returns that are required to be filed after December 31, 2019, the SECURE Act increased the penalty to $250 per day, not to exceed $150,000 for a late-filed form. But the penalties don’t stop there. In addition to the IRS penalty, the DOL can assess […]
SECURE Act: New part-time eligibility rules for 401(k) plans
In 2020 and prior years, Solo 401k plans could exclude part time W-2 employees who worked less than 1,000 hours from participating in a 401k plan. This all changes for both full-time employer 401k plans and owner-only Solo 401k plans starting on January 1, 2021. The SECURE ActStemming from the Setting Every Community Up for […]
Excess Solo 401k contributions
The Solo 401k participant typically makes annual Solo 401k plan contribution when completing business tax return for the year. As a result, the Solo 401k participant can usually determine her IRC Sec. 404 deduction limits before making her Solo 401k contribution, thus preventing any excess Solo 401k contribution headaches.10 Percent Penalty and Form 5330: When […]
Contribution basics
As the year comes to a close, we’d like to remind you to plan for your contributions to your Solo 401k. In this article, we’ll discuss the following questions: How do I calculate my contributions for this year? How do I actually make contributions to my Solo 401k? When is the deadline to make contributions? […]
Accounting within your Solo 401k
As Plan Administrator of your 401k, you are responsible for tracking all of the funds and assets of your 401k. The monies in your 401k should be kept accounted for separately. Types of monies include: Rollover(s) Employee salary deferral contribution(s) Employer profit sharing contribution(s) Roth contributions etc. You will need to establish a clear accounting […]
Plan number
What is my plan number? Answer: If you had us set up a brand new plan for you, the plan number will always be 001. If you had us amend and restate your existing plan, it may be a number other than 001. Please refer to page 1 of your plan Adoption Agreement to verify […]