Solo 401k Controlled Group Question
Wednesday, September 20
QUESTION: I am interested in starting a Solo 401k for a business that I own 100% of the stock. I also own 50% stock in a second business which is an S-corp and pays me wages. The second business also has 3 other full time employees. Is the 50% ownership in the second business going to prev...
Payoff Solo 401k Participant Loan Balance and Borrow Again
Tuesday, September 05
QUESTION:We are wondering if we could pay off our solo 401k loan balance now and then borrow a larger amount against it again.ANSWER: Good question. As you can imagine, specific IRS rules apply to solo 401k participant loans when paying one off and then borrowing from the solo 401k plan again. Sp...
Multiple Solo 401k Plans Participant Loans
Monday, August 07
QUESTION:When we have multiple solo 401k accounts set up under one trust, can we take a personal loan from both accounts or just one loan per trust?ANSWER:Each solo 401k participant can borrow 50% of their respective solo 401k balance not to exceed $50,000. For example, if participant 1 has a sol...
Can I contribute to both an IRA and a solo 401k plan?
Tuesday, August 01
QUESTION:I’m looking to open a solo 401k as I am self-employed. I want to max that out and also max out an IRA for myself and my spouse. Are there any phase out limits in regards to being covered by a “workplace retirement plan” and having the solo 40k and still being able to fund the IRAs?ANSW...
Partial or Full In-kind Distribution of Real Estate from Solo 401k
Thursday, July 06
SCENARIO & QUESTION: The research that I have done, indicates that I have the option of withdrawing Real Estate held in my Solo 401K trust as a distribution.The details are as follows: My Solo 401K Trust holds title to a single parcel of real estate that was purchased a couple of years ago. ...
Asset Protection Inside and Outside the Solo 401k Plan
Friday, June 23
QUESTION:How do I deal with asset protection since I will be investing my solo 401k in real estate, inside and outside of the Solo 401k?ANSWER:You could get property insurance for each solo 401k owned property or purchase a blanket insurance policy.QUESTION:Also, my wife and I have a living trust...