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. 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 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 […]
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 […]
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? […]
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 […]