All Forum Posts by: Daniel Dietz

 Thanks for clarifying that about the Profit Sharing part being only Pre-tax and then converted. 

If I am understand you correct the "Employee Contribution" of $22,500 can be put 'directly' into the ROTH component of the plan the way you set them up, without being a 'taxable event'?

Thanks, Dan Dietz

I have run into this insane law also.... makes NO sense at all. It would have been nice if they would have fixed this in the latest legislation that actually helped retirement savings in many other ways.

I would be interested to here what @Dmitriy Fomichenko or some of the other experts here such as @Brian Eastman, @Carl Fischer, @Bill Hampton or others would think about my latest thoughts on a legal 'work around' to this, because I am sure there others like me out there who have a LOT of funds in ROTH IRAs who would like to convert over to SOLO401Ks for simpler borrowing.

I have had my ROTH IRA for well over the 5 Year Rule, and well over 100K of 'basis' or contributions in it also, which to my understanding means I could take out however much of that basis I would like, even though I am *not* yet 59.5 years old.

I would also qualify for a SOLO401K as I *am* self employed, and my limit for a SOLO401K would be at least 50K per year with my age (over 50) and income.

Would there be any reason that I could *not* take out say 50K per year *from* my ROTH IRA, and then also "move that over" to my SOLO401K as a new ROTH contribution?

I do realize that I would not be able to contribute 50K from THIS years income also, but that is fine for me..... currently I am using all of the extra I have to either buy more rentals *outside* of my retirement accounts or grown my business.

Thanks, Dan Dietz

We use @Dmitriy Fomichenko for our provider and have been very happy with his services and knowledge. We used NASB off of the list of lenders he shared and it was a very smooth process. 

Some good info being shared here!

I have a similar but slightly different question. I DO qualify as a REP (contractor doing my own maintenance and PM on my own properties. But my income is not that high to really worry about offsetting.

BUT, what I would like to do it 'convert' some properties that I own in my SOLO401K from 'Traditional' to 'ROTH'. Just like a regular IRA or SOLO, that would be a 'taxable event'.

If I did a SOLO401K Roll-over of say 100K that would normally be counted as Ordinary Income Tax (I think). Would the Cost Segregation Study, IF it produced 100K of "Accelerated Depreciation", 'offset' that 'extraordinary income' from the SOLO401K roll-over?

I hope that makes sense :-)

Thanks, Dan Dietz

Your are getting some really good advice here.

If you want to dig into the topic farther, I would google up @Mat Sorensen & Mark Kohler from KKOS Lawyers & Accountants. (They are also the parent company of Directed IRA) They have some EXCELLENT YouTube videos and podcasts on that topic (as well as MANY others). A summary, as *I* understand it, is that there is rarely a need for a Wyoming LLC or similar.

They have done work for us on our LLCs that are made up of multiple SDIRAs and SOLO401Ks with excellent results.

Dan Dietz

We have a couple properties like this (In addition to other properties). Essentially we switched to this set up when we ran out of down payment funds but wanted to keep acquiring more units.

How we did it was form an LLC, us a Commercial or DSCR Loan. Partner A brought ALL of the down payment as their contribution, and Partner B (us) did the finding of the unit (off market) negotiated things, arranged lending (that we all had to sign on) arranged tenants and do all ongoing PM needed.

We split all cash flow yearly 50-50. For the long term equity growth (appreciation and loan paydown) that will be split some day down the road 50-50 when we sell or refinance. Before any of THAT is split Partner A will get their down payment returned.

I call it a win-win..... we did not have the funds to do the DP, and they are getting a much better return than their previous investment with no extra work on their part.

Dan Dietz

I agree with those who have said to check out some of the providers that contribute here in the Forums.

As to a LAWYER to see up LLCs that are made up of more than ONE Self Directed Account, which can get complicated, I would recommend KKOS Lawyers and Accountants. It is headed by Mark Kohler & @Mat Sorensen, two of the experts in the field AND they both use those type of accounts/LLCs in THEIR own investing.

Dan Dietz

We use Rentec Direct and love it. Super easy to use/learn, great customer support etc...... It is the only one we have used, so can't really chime in on others. We use it for about 25 units over 7 different entities, therefore use their 'Property Manager' version vs the one that is geared towards a simple single owner of multiple properties.

Dan Dietz