All Forum Posts by: Thomas Shephard

I understand creating an entity (LLC, etc.) for a flipping business to protect your personal assets from potential issues that arise on a property flip.

But my understanding is that if someone gets a judgment against me personally that all of my assets including LLCs are subject to that claim.

I already have a $5 million personal umbrella policy. Are there any other steps someone can suggest to add additional asset protection? Thank you!!

Interesting. So at any point I could take the 25% employer contribution and convert to the Roth bucket (paying taxes on the conversion amount)?

Also, regarding safety against a Ponzi or Bernie Madoff scenario:

-Are funds safe from such abuses with a custodian of SDIRA or Solo 401k or could a custodian shut their doors and you lose everything?

-Does being custodian of your own Solo 401K allow you to keep funds at your bank of choice and under your own control?

Many thanks again Dmitriy!!

Thank you Dmitriy!

With the Roth 401k, I was told that the employee annual contribution up to $17,500 would go toward a Roth component within the 401k and the employer match up to $33,500 would go toward a traditional 401k component (which would be taxed in retirement upon withdrawal). Is this correct? If so I am trying to avoid any tax on retirement savings when withdrawing upon maturity.

Also, when rolling over the traditional IRA of $100k that I have into a Solo Roth 401k, will I be able to elect to roll the entire $100k into the Roth portion of the 401k so that the profits can grow tax free? And if so, when paying the upfront taxes on the $100k would I be able to use separate funds so as to not diminish this $100k seed money or would the tax be taken out of the $100k?

I am also researching the Solo 401k vs SDIRA and hoping to find some clarification and possibly some links to previous threads.

-When pulling money out of Solo 401k at age 59.5+ will withdrawals be tax free similar to a self directed Roth IRA or will they be taxed?

-I am 35 and already have $100k in a traditional IRA that I was considering rolling into a SDIRA so that all profits over the next 25 years will be tax free. Would a Solo 401k offer this as well?