Separate accounts
Your Solo 401k requires separate accounts per participant and per type, such as: Rollovers Employee contributions Employer contributions Roth Depending on the number of participants and types of funds within your Solo 401k, you will need to establish that number of account(s), when you are ready to fund them. For example, if you are the only participant and […]
Options for an inherited account
I inherited a 401k from my mother who passed away. Her current financial institution told me that they could not authorize a rollover and that it would need to be cashed out. Can this inherited account be rolled over into my Solo 401k plan? A 401k that you inherited cannot be rolled over into your […]
Controlled group
I expect to own a separate business with full-time employees. Will this affect my existing Solo 401k, which is adopted by my business where I’m the sole owner and the only employee? You must first determine if your businesses fall under controlled group rules, established by the IRS and Department of Labor (DOL). Purpose of […]
Office equipment for Solo 401k
Can I purchase office equipment, such as a scanner, with my Solo 401k bank account? This would be used exclusively for the properties that I will purchase with the Solo 401k and not for any other personal purposes. No, we would strongly urge against doing so. While your intention may be to use this exclusively […]
Accredited investor
I’d like to invest my Solo 401k into an investment that only allows accredited investors. How does the Solo 401k qualify to be accredited? In order for a Solo 401k to qualify as an accredited investor, the Solo 401k owner must qualify: Annual income of over $200,000 single, or $300,000 married, in each of the […]
Depreciation expense
Can I claim a depreciation expense on a property owned by my 401k? No. Because the rental income from the property owned by your 401k is sheltered from taxes, there is nothing to deduct it against. The property is owned by your 401k, so this does not affect your personal income taxes as well.
Required minimum distributions
Required Minimum Distributions (RMDs) are the minimum amounts that must be withdrawn from your retirement accounts each year, once you reach a certain age. You are responsible for taking your RMDs, withholding the taxes from your RMDs, and reporting your RMDs These amounts will be included in your taxable income, except for parts, if any, […]
Transferring an annuity into my Solo 401k
Can I transfer an annuity into my Solo 401k? If so, how? An annuity is a tax-deferred vehicle. By itself, an annuity is not a qualified retirement account. However, if the annuity is held within a retirement account (e.g. by an IRA), it can be rolled over into a Solo 401k. If your IRA holds […]
Filing Form 5500-EZ if the value goes down
If I file Form 5500-EZ now, does that obligate me to file subsequent 5500-EZ forms for the following years even if the total plan assets are below 250k? No. Form 5500-EZ is only required if the total plan value is $250,000 or above, as of the end of the plan year. Filing the form is […]
Solo 401k account statement
We are applying for a new mortgage and the lender would like to see a quarterly statement for our retirement accounts. Do you have anything prepared that I could plug my numbers into? The following template can be used: Solo 401k statement template Note the following to properly complete the statement: Download the file and […]