What types of investments can I make with my Solo 401k?
Sunday, October 04
The law does not permit funds to be invested in collectibles.If you invest your solo 401k/individual 401k in collectibles, the amount invested is considered distributed in the year invested and, if you are under age 59 1/2, you will have to pay a 10% additional tax on early distributions.DISAL...
Solo 401k UBIT on investment vehicles requiring margin
Thursday, October 01
QUESTION: I've read your UBIT post that stated income from debt financed real estate investments are not subjected to UBIT in a Solo 401(k). I've read elsewhere that proceeds from leveraged investments (trading on margin) is subject to UBIT; is that true? If so, would any trades/investments req...
Self-Directed Solo 401k Roth Solo 401k Recharacterization Question
Tuesday, September 15
QUESTION: I am thinking about doing an in plan Roth 401k conversion of the remaining funds in the pre-tax part of my solo 401k plan (around $300K). I am with my tax advisor now and we are questioning if this could be recharacterized (undone) later in 2016 when my tax situation becomes clearer. ...
Self-Directed Solo 401k 60 Day Rollover Distribution
Monday, August 31
QUESTION: I know IRA rules allow me to take money from it for short term use of less than 60 days and put that back into the IRA as rollover without being regarded as distribution. Is this allowed for a solo 401k and how? Answer: Yes it is generally more advantageous to process a 60 day rollov...
Can I satisfy Solo 401k Required Minimum Distribution with Real Estate
Tuesday, August 11
QUESTION: I'm turning 70 on October 5 so I suspect I will need to start spending some of my 401k money next year to meet minimum distribution requirements. However, about 95% of the funds are invested in real estate. You mentioned once that there is a way to move the real estate out of the by, I...
Solo 401k Bank Account Tips | Self-Directed 401k Bank Account Guide
Tuesday, July 07
The self-directed solo 401k provider that you opened your self-directed solo 401k with will generally have a contact at a major bank ( popular major banks include Bank of America and Wells Fargo bank). However, some business owners may instead choose to open the solo 401k bank account at their lo...