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? Answer: 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 […]
Plan year different than employer fiscal year
Can the plan year be different than the employer fiscal year? Answer: Yes, the plan year can be different from the fiscal year, but you must then pay careful attention to the deadline for making contributions. The deadline for depositing employee salary deferrals into the plan is relatively straightforward. However, the same cannot be said for […]
Having precious metals in my personal possession
Can I hold precious metals that are owned by my Solo 401k Trust in a safe at home? Answer: No, as this would raise a number of problems. As trustee, the individual may not use plan assets for his or her own benefit. If the coins are held in the individual’s safe – that would look like […]
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 […]
Correcting Solo 401k Trust EIN
While doing my taxes this year, my accountant realized that my Solo 401k trust has the same EIN as my business. After reviewing the paperwork you originally sent me, I realize that I made an error when I setup my Vanguard account. I gave them my business EIN instead of the trust EIN. Can I […]
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 […]
Solo 401k contribution from self-employment income
Is it correct that a Solo 401k only allows me to contribute based on my self-employment income? Answer: Yes. The Solo 401k plan is an employer-sponsored plan. The employer is the plan sponsor which you used to adopt the plan. This is your self-employment, either you as sole-proprietor or a business entity (LLC, corporation, etc). […]
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 […]