Paying for training from the Solo 401k plan
I want to expand real estate holdings in my Solo 401k into another sector, but that would require me to take a 3-day course with someone who will be a mentor to teach me this business model in order for me to do this. My question is: can I use the cash that I have […]
Can I rollover a foreign pension plan to a Solo 401k?
I have a UK personal pension. Essentially, it’s the same format as the 401k. Do you have any experience/information on if and how I could roll that into my Solo 401k? Answer: Foreign pension plans cannot be rolled over to a U.S. IRA or Employer Plan.
Titling of assets in the Solo 401k trust
When dealing with all plan assets, whether a bank account or a title to real property, always use the Solo 401k Trust. All assets purchased by the retirement account should be titled in the name of the Solo 401k Trust Always use the Solo 401k Trust EIN for any 401k transaction Check the Solo 401k […]
What can a Solo 401(k) invest in?
Contrary to the vast majority of 401(k)s and even some Solo 401(k)s, your Solo 401(k) from Sense Financial can invest into anything allowed by law. Our plan documents don’t place any additional restrictions on your activities. This leaves you free to invest in real estate, private businesses, mortgage notes, and more. The acquisition of traditional […]
Is my Solo 401k plan covered under ERISA?
Your 401(k) plan is a Qualified Plan. The DOL regulations provide that a plan that covers only partners or a sole proprietor is not covered under Title I of ERISA. Pursuant to Department of Labor Regulations 2510.3-3(c). However, even though a solo 401(k) plan is not subject to Title 1 of ERISA, the ERISA rules […]
Fixing incorrect transaction on my 401k debit card
I opened up a bank account with a debit card for the Solo 401k account. I just realized that I gave the debit card number to a wrong vendor who has charged me twice for a personal transaction. How do I fix this? Answer: First, let me remind you to treat your 401k transactions with greater caution. The 401k checkbook/ […]
Contributions from my corporation
Can you please explain how to make contributions to my 401k from my corporation. Can I get paid by the corporation as an independent contractor via 1099 and then claim the state taxes on my personal return or do I need to do the payroll deductions and submit them to the state? Answer: Since your 401k […]
Peer to peer lending using Lending Club
I’d like to check with you if participating as a lender in peer-to-peer lending platform such as Lending Club will be okay in my Solo 401k. They do support opening a Self-directed IRA account, but I would like to be able to invest directly out of my 401k without opening new self-directed IRA account. Answer: Yes, […]
Paying the fee to setup the plan from the plan
Can the fee to set up the plan be counted as a plan expense and be paid for out of the plan? Answer: Generally, expenses incurred in connection with the establishment, termination and design of the plan relate to the employer’s business activities and should not be paid by the plan. See DOL Advisory Opinion 2001-01A. […]
Choosing a business to adopt your Solo 401k
As an employer-sponsored plan, the Solo 401k requires an adopting business. The adopting business must represent your self-employment. If you have more than one self-employment business that you own, consider the following when choosing which self-employment business will adopt the plan. Adopting business can be any entity type The Solo 401k can be adopted by […]