Performing a Roth conversion
IMPORTANT: Please speak with your CPA prior to performing a Roth conversion in order to understand the tax consequences. This is a taxable event. For more information on Roth conversions, review our Knowledge Base articles. If you would like to perform a Roth conversion, please do the following: From a banking standpoint, the Roth account is […]
Can my wife transfer her retirement funds to my Solo 401k plan?
No, she cannot rollover her retirement funds into your account within the Solo 401k. Only participants in the Solo 401k can rollover funds from their retirement accounts into the Solo 401k. If you are the only participant in the Solo 401k, only you can rollover funds into the plan. Your wife can participate in the […]
Withholding 20% tax on distribution
I would like to take a distribution from my Solo 401k plan. How do I withhold and report the taxes to the IRS? As the plan administrator, it is your responsibility to withhold the taxes and report the distribution. You will need to do the following: 1. Withhold the taxes and remit them using the […]
Plan year different than employer fiscal year
Can the Solo 401k plan year be different than the employer fiscal year? Yes, but note the following: The plan documents will typically list the plan year as the same as the employer fiscal year You provided your employer fiscal year on your initial Solo 401k application If the plan year is different from the […]
Paying for training from the plan
I want to expand real estate holdings in my Solo 401k to another sector, but that would require me to take a 3-day course with a mentor to teach me the business model. Can I use the funds from my plan to pay for this class? No, a training course in investing or travelling for […]
Can I rollover a foreign pension plan to a Solo 401k?
I have a UK personal pension. Can roll that into my Solo 401k? No, foreign pension plans cannot be rolled over to US retirement accounts, such as an IRA or employer-sponsored plan.
Titling of assets in the Solo 401k trust
All accounts and assets of the 401k should be titled In the name of the 401k and Using the EIN of the 401k This includes bank accounts for the 401k, notes purchased by the 401k, and title to real property owned by the 401k. Check your plan documents first The name of the 401k and […]
What can a Solo 401k invest in?
Your Solo 401k is designed to give the widest range of investment options as allowed by law. In the plan documents Your plan documents state that you can direct the investments of your 401k As Participant in the 401k: Defined Contribution Adoption Agreement, L4 As Trustee of the 401k: Defined Contribution Trust Document, 4.2 The […]
Is my Solo 401k plan covered under ERISA?
No, the Solo 401k is not covered by ERISA. Your Solo 401k is a qualified plan Department of Labor (DOL) Regulations 2510.3-3(c) state that Title I of ERISA does not cover plans for partners or a sole proprietor, such as a Solo 401k While the Solo 401k is not technically covered under Title I of […]
Fixing incorrect transaction on my 401k debit card
I opened up a Solo 401k bank account with a debit card. I just realized that I mistakenly gave the debit card number to the wrong vendor, and he has charged me twice for a personal transaction. How do I fix this? Using the 401k funds for personal transactions is a prohibited transaction, as you […]