Can my Solo 401k plan partner with myself?
I now have my Solo 401k Plan and would like to use 401k funds to partner with myself on investment. How can I do that? Can I also partner with someone else’s IRA or 401k? Answer: Your 401k can always partner with other people individually or with other people’s IRAs. Under certain circumstances you personally […]
Insurance on property owned by Solo 401k
I’m in escrow to buy rental property with my Solo 401k trust. How should I take the insurance? Answer: The property insurance should be obtained in the name of the Solo 401k trust (the owner of the property). Sometimes an insurance company may insist that the insurance be in your name as an individual. As […]
Can you open a Solo 401K when you’re 70 years old?
My parents are selling their business and retiring. They’re going to make some money on the sale and are worried about taxes. They have earned income for this year to date from the business, so I am wondering if they can contribute the max to a newly opened Solo 401K and at least get the […]
Using both spouse’s accounts under the same 401k
Both my wife and I have separate accounts under our Solo 401k. Can I use funds from my account together with my wife’s account to make the investment? Yes, you can pool funds together from different accounts under the same 401k into single investment, e.g. the husband’s account and the wife’s account under the same […]
Required plan amendments and restatements
The IRS requires the following for your Solo 401k: Interim amendments, which occur periodically Restatements, which occur every 6 years or so Required by the IRS These amendment and restatements are issued by the IRS to reflect changes and updates in the laws which govern qualified plans, including your Solo 401k. When the IRS releases […]
1099-INT reporting earned interest on Solo 401k bank account
I received Form 1099-INT interest earned statement from my bank (Wells Fargo). Does the interest earned need to be reported on my tax return? If yes, TurboTax will automatically apply taxes on it. Since the bank account is for a 401K, I believe income tax should not be applicable on it. Can you help? Answer: Assuming […]
Transferring personal property into Solo 401k Trust
Now that I have my Solo 401(k) Trust set up, I would like to move investment properties that I personally own into my Solo 401(k) yearly, of course, taking into value the maximum contribution per year. What is the procedure to move properties into my Solo 401(k) instead of contributing in cash form? Answer: You […]
Multiple Solo 401k participant loans
I currently have one outstanding participant loan from my Solo 401k. I would like to pay it off and take another one, larger in size. Are there any problems with taking multiple loans in a short period of time? Your Solo 401k allows up to 3 outstanding participant loans at a time The second participant […]
How do I order checks for the Solo 401k Trust account?
How do I order checks for the Solo 401k Trust account? Answer: There is no special procedure for ordering checks for the Solo 401k Trust. When ordering checks for the Solo 401k Trust, please note the following: The trust name (e.g. “ABC Solo 401k Trust”) must be printed on the checks as the account holder. […]
Paying for marketing to find a seller
Can my Solo 401k pay for marketing to find sellers to buy a home to rehab within the plan, such as Google PPC, website, direct mail, hiring someone to put out bandit signs, etc? Can the plan pay for an “advisor” – who is not a disqualified person – to mentor/advise on all aspects of […]