401k Participant Loan Offset Explained
Saturday, November 24
A 401k participant loan offset only applies when the 401k participant separates from employment or if the plan is terminated by the employer. A loan offset happens when the 401k participant's balance in the plan is reduced by the outstanding loan balance at time of the direct-rollover to an IRA o...
Execute Mega Backdoor Roth Solo 401k (After-Tax 401k Contributions)
Saturday, December 09
QUESTIONS:I am trying to execute the "mega backdoor roth solo 401k". Can you confirm the steps below:1) Open a Solo 401k account by December 31. 2) Since my self-employed business is a sole proprietorship, contribute $54,000 of self-employment income to the plan as an after-tax contribution by Ap...
Sell Part of Solo 401k Owned Investment Property to an LLC
Wednesday, September 13
Question regarding purchase of property:I purchase an investment property (house, barn and acreage) through my Solo 401k.I subdivide the property in order to keep the house/barn in the Solo 401k (as a rental unit) and sell off the acreage.Can I sell the acreage at Fair Market Value to an LLC I o...
Purchasing a Travel Trailer Through the Solo 401K
Tuesday, August 15
QUESTION: I am interested in purchasing a travel trailer through the Solo 401K and rent it out through an independent renting service (RVShare.com). Is this permissible under the rules? I understand that any expenses and payments would originate from within the K, as well as any profits.ANSWER...
Chart Compares the ROBS 401k to the Solo 401k Loan
Wednesday, July 26
Compare ROBS 401k vs Solo 401k LoanSolo 401k LoanEntity type that can establish: Any entity type (Sole Prop, LLC, S-corp)Repayment Required: Yes – monthly/quarterly payments, 5 year term, Prime+1%Employees Allowed: Owner-only business with no full-time w-2 employeesLimit: 50% of the balance not t...
Solo 401k Mobile Home Investment Question
Thursday, July 06
QUESTION: Can I buy a mobile home as an investment (Rental) with Solo 401k funds?Can I place that mobile home (as a Rental) in a mobile home park owned by an LLC of which I am a member?ANSWERS: While the solo 401k plan may be invested in a mobile home, the mobile home may not placed in a mobile h...