Reporting CARES Act distributions and repayments
The IRS has released Form 8915-E and 8915-F for the reporting of CARES Act distribution(s) that were taken in 2020, their repayment, or their inclusion in income. If you took a CARES Act distribution in 2020, note which form(s) would apply to you: Form 8915-E is used to report: If you took a CARES Act […]
Can I contribute more than my business has in revenue?
Can I contribute more than my business has in revenue? No. All contributions to your Solo 401k must come from your compensation from the adopting business of the plan. You cannot contribute more than what you earn in compensation. Defining compensation Contributions Guide
Calculating plan assets
I’m getting ready to file Form 5500-EZ and need help calculating the plan assets of my 401k. I used some of the funds for a down payment to purchase an investment property. The rest of the purchase price was financed using a hard money loan. My wife doesn’t have any investments at this time, just […]
How do I value real estate in my Solo 401k plan?
My Solo 401k plan owns real estate property. How do I value it? The value of each property can be obtained through: Real estate comps (based on other properties in the area) or Third-party licensed appraisal If you are performing an in-kind conversion or taking an in-kind distribution of the property (i.e. there is a […]
Excess Solo 401k contributions
When the Solo 401k participant contributes more than the allowable deduction for a given tax year, they are typically required to pay a 10 percent penalty on the over contribution amount (also known as the excess nondeductible contribution amount pursuant to (IRC Sec. 4972)). Determine contribution type When removing excess contributions from the plan, the Solo […]
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? […]
Plan number
What is my plan number? The plan number of your Solo 401k is listed on your plan documents See your Defined Contribution Adoption Agreement, page 1, A10. Three Digit Plan Number For most plans, the plan number is 001 This represents the number of plans that your business has adopted. If your business had a […]
Crypto in the Solo 401k
Can my retirement account own crypto? Yes. Cryptocurrency and other crypto assets are allowed inside of retirement accounts, similar to gold, real estate, stocks, bonds and ETFs. IRS on cryptocurrencies In notice 2014-21 released on March 25, 2014, the IRS indicated that treatment of cryptocurrencies would be similar to property (e.g. real estate), rather than […]
Solo 401k and personal taxes
Can you provide guidance on what I’m required to do on the tax/CPA side of things? What should I submit to my accountant for the plan? Note that we are not qualified to provide tax, legal or investment advice. This information is intended as general guidance only. You should always consult with an experienced tax professional regarding […]
CARES Act F.A.Q.
We understand that the uncertainty and disruption caused by COVID-19 have led to a lot of questions including many related to retirement plan administration. While the situation has been changing on an almost hourly basis, we wanted to distribute answers to the questions we are seeing often based on the information we have at this […]