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Required Minimum Distributions (RMDs) are the minimum amounts that must be withdrawn from your retirement accounts each year, once you reach a certain age.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 […]
Terminating the Solo 401k
How do I terminate my Solo 401k plan? Terminating your Solo 401k plan includes the following steps: Distribute all assets of your Solo 401k plan Distributions may be taxable or non-taxable, depending on the type of distribution taken. Formally request to terminate your Solo 401k plan You must submit a request to us in writing […]
Correcting a prohibited transaction
After the prohibited transaction has been identified, it must be corrected immediately, within the taxable year if possible. Correcting the prohibited transaction means to undo the transaction to the extent possible and in any case to make good to the plan or affected account any loss resulting in the transaction, by restoring to the plan […]
Direct vs. indirect rollover
I am trying to rollover from my existing IRA to my Solo 401k. The IRA custodian is saying that this can be processed as an indirect rollover, which is allowed once a year. Is this the correct way to proceed? A rollover can be processed as an indirect rollover or a direct rollover. Indirect rollovers […]