All Forum Posts by: Joseph Hammel

I make all the showings at the same time then the 50% no shows don't waste my time. If the add says no pets and they ask if they can then the message gets deleted.

Quote from @Stephen Dougherty:

Talk to a CPA (which I am not)... you could do a 401(k), but 401(k)'s have a lot of rules and are fairly expensive to set-up and administer unless you already have one set-up for your business. If I had to guess a 401(k) would be more expensive and onerous than the taxes you would save. I suggest SIMPLE IRA for a small business. The rules are less complex, there aren't any fees (at least at Schwab), and more tailored for small businesses; however it doesn't allow for quite as much in contributions ($14k in 2022).

There are third-party admin people that can help you set up and administer your solo 401k for a relatively inexpensive fee it's about $300 a year I currently use one company to do the same for my self-directed Roth IRA.
I'm looking to go with the 401 option because I can do a 100% contribution up to $20,500 now.
that's just a little over my net in one month on my rentals. I'm also looking to convert all the funds to Roth when they come in the only part that I haven't quite figured out 100% yet is my initial question. 

Quote from @Dmitriy Fomichenko:

@Joseph Hammel,

It is your rental business so it is up to you who manages your properties and how much you pay, but I would suggest that you discuss this strategy with your CPA to ensure that you are fully understand all the numbers. 

 Hey I've asked my CPA and I've even called a couple of CPAs and I can't find a good answer to this question. I know there are some experts in this particular type of scenario funding a 401k. I'll wait for them to jump in.

Can I "pay myself" to manage my rentals 20.5 k on a sched C and write off the fee. I would pay the same income tax and add fica on the sched C. Goal is to fund a roth solo 401.

Quote from @Daniel Dietz:

You are getting some good advice here. I was in the exact same situation of wanting to roll over a quite substantial ROTH IRA into my new SOLO401K planto more easily leverage inside of the SOLO401K vs the IRA. I dont know HOW the IRS ever came up with that rule, but it is what it is.

One thing that I *think* you can do with your current ROTH IRA is to withdraw all of your contribution (basis), which you are allowed to do tax and penalty free.

IF you have qualifying self employment income to support large contributions, you can effectively 'roll over' the 'basis part' of your ROTH IRA to your SOLO401K. This method obviously only makes sense if you have a VERY large ROTH IRA basis AND want to leverage it.

I would also suggest reading back through the forum questions here on BP where several great providers and experts have given so much great guidance over the years, and checking out Mark Kohler of KKOS Lawyers and Accountants Youtube channel. TONS of great info to guide you.

It's mostly converted old 401k's, IRA's and a little original roth. And a LOT of appreciation. If I sold the 2 properties would be 250kish. Hindsight 20/20 I should have went solo THEN converted. My "live" portfolio is netting 18k a month (and growing) after everything so I can afford to start setting aside more. Wife has a nice non converted chuck sitting there as well. I still have several unanswered questions. Where are the 401k experts, cpas, attorneys, and salesmen selling this stuff?

Quote from @Brian Eastman:

@Joseph Hammel

I am 100% sure you cannot rollover a Roth IRA to a 401(k) plan.

Here is the IRS rollover chart.

https://www.irs.gov/pub/irs-te...

Ok. Any help with the other questions in my post?

Quote from @Brian Eastman:

@Joseph Hammel

I am 100% sure you cannot rollover a Roth IRA to a 401(k) plan.

Here is the IRS rollover chart.

https://www.irs.gov/pub/irs-te...

Pretty sure I can do both the rollover would be really no different than if I had for example a Roth at vanguard and rolled it into a 401k.

as far as paying myself I'm paying a business that I'm running from my other business most investors would never do this because they don't want to pay self-employment tax on passive income.

Hi, So I have a self directed "checkbook control" roth that currently holds 2 properties free and clear. I'm looking to change to the Roth Solo 401k. I currently use Advanta IRA and have been really happy with them. My main portfolio is doing very well at 26 or so properties and 94 ish units. I want to have the ability to do leverage in the 401k and I understand that the UBIT tax is not applicable in the 401. I also want to be able to contribute to the 20500 at 100%. So I will walk through my plan and add questions along the way if any of you gurus want to verify I'm on the right track.

Step one. Open solo roth 401k and roll the IRA into it. Does anything need to change with the holding LLC with that change?

Step two. "pay myself" a fee for managing or consulting or whatever and 1099 myself $20500. Then I get to write that off of my rentals right? I know, not the 401, talking my main portfolio.

Step 3. Contribute the 20500 to my new Solo 401k. Because its roth I pay the taxes now. 

Step 4. File a sched c on the 20500 and pay the tax and self employment tax on it. 

Between writing it off on the rentals I will pretty much just be paying the self employment tax. 

Second question, Can I still make $6000 roth contributions as well? (my wife still has a w2 job) If she quit would I be able too with my sched c income?

I have some higher level questions above this like adding employees ect. Ready to talk to an expert. Willing to move to a different admin as well.

Thanks!

These are great also.