Credit card for my Solo 401k
Now that I set up my Solo 401k, can I get a credit card for my plan to pay for investment-related expenses and to earn rewards? No, you cannot get a credit card for the Solo 401k. A debit card is allowable, but not a credit card. A credit card application will require you to […]
Paying property expenses
How do I pay real estate property expenses which cannot be paid using the 401k name, like utilities? Can I pay the expenses from my personal account and then write myself a check to reimburse myself? No, you cannot pay 401k expenses with your personal funds, nor can you reimburse yourself from the 401k. All […]
Can I invest in life insurance with my Solo 401k?
There are many financial experts who adamantly state that qualified plans funds (e.g., 401k) should never be used to purchase life insurance. Although it is restricted, you could use your Solo 401k to invest in life insurance. This makes sense in the following cases: You may not otherwise qualify for life insurance because of health reasons; […]
Contributions to both SEP IRA and Solo 401k
Does the IRS allow contributions to both SEP IRA and Solo 401K in the same year? Yes, you may contribute into the SEP IRA and Solo 401k in the same year, but you cannot exceed the contribution limits in total. The Solo 401k is more advantageous The Solo 401k allows you to maximize your contributions […]
Calculating participant loan
I understand that the loan amount allowed for my Solo 401k is up to 50% of the 401k account balance or $50,000, whichever is less. If my plan owns real estate, does the value of the real estate count as part of the account balance, or is it only based on the cash balance in […]
Restating Solo 401k from another provider
I originally set up a Solo 401k with another provider (e.g. Fidelity), but I’m limited to what I can invest in. Can I move my Solo 401k to Sense Financial instead so I can self-direct it and have checkbook control? Different types of Solo 401k providers There are different types of Solo 401k providers, and […]
Spousal participation
Can my spouse participate in my Solo 401k plan? A spouse is eligible to participate in your plan if they are an employee of the company that adopts the plan If your spouse is an employee of the company that adopts your Solo 401k, he/she is considered an owner-employee since the two of you are […]
Document a rollover or transfer to my Solo 401k
How do I document a rollover or transfer to my Solo 401k? Answer: Documenting a transfer from your existing retirement accounts to your Solo 401k when filing your taxes is pretty simple. The exact lines used to enter your transfer amounts will vary depending on what type of account the transfer originated from as well […]
Limit for direct rollovers into the Solo 401k
Is there a limit to how much I can rollover or how many rollovers I can do per year from other retirement accounts into the Solo 401k? If I want to rollover more funds later can I do that? From the Solo 401k’s side, there is no limit on the amount that can be rolled […]
Can I rollover my Roth IRA into a Roth Solo 401k?
Can I rollover my Roth IRA into a Roth component of my Solo 401k? No, the IRS does not allow a Roth IRA to be rolled into any 401k, including a Roth Solo 401k. IRS rollover chart Roth IRAs can only be rolled into other Roth IRAs If you are interested in setting up a […]