All Forum Posts by: Mark Rogers

@J Smelser, on LR real estate attorneys,  Tim Grooms (Quattlebaum, Grooms, Tull) is a real estate attorney and investor and is one of the smartest people I know.  On CPA's, I haven't used him yet, but Tim Johnson, at Bell Foster does a LOT of real estate investing on his own, so I plan on going to him when I come up with my next real estate related tax question.

Welcome, Andrew!  That sounds like a pretty nice combination of skills for real estate investing.  I hope to run into you at the CARREIA meeting tomorrow.

I am not a tax attorney, but I seriously doubt that you will be able to roll over IRA funds in your sister's name into a 401(k) that is in your name. My wife and I just finalized and funded a 401(k) plan with IRA rollovers yesterday. We are both owners of the LLC and the 401(k) Plan has subaccounts for both of us. She rolled over her account into her 401(k) subaccount, and I rolled my IRA into my subaccount.

If you don't want to add her as an owner or employee with her own 401(k) subaccount, you can probably just set her up with a self-directed IRA that allows her to make loans. Check with your tax lawyer or CPA, but if I recall correctly, siblings are not considered "disqualified persons," so there is a good chance that you can just borrow from her account without moving it into your company. Since it would be an investment instead of a personal loan taken out by the IRA owner, you can probably even borrow more of her funds than if the funds were in your IRA. Big caveat ... run this past a tax lawyer or CPA, because this is just my uneducated layman understanding.

Did they tell you about how much it will cost to do that for one day?

Welcome!  I worked for a tall building law firm in Dallas many years ago before moving back home to LR.  Dallas was a great place to go to get a lot of good experience fast, but I hope you enjoy the more relaxed, congenial pace here in Central Arkansas as much as I do.   

Welcome and Congrats!  I wish I had found this place when I was your age.  

I didn't include the details, but we'll be paying about $10,000 in out-of-pocket medical expenses over the next few weeks, so it's worth a few thousand dollars if I can figure out how to pay that with pre-tax dollars.  My question isn't about a get rich quick scheme, it's about exploring an option that is worth a few thousand dollars if I can get it resolved in the next week or three.

My wife and I close on the sale of her former home tomorrow and are putting the finishing touches on the legal side of things before we start making offers and bidding at auctions. We will set up an LLC with an S Corp election to use for flipping houses. I'm not quitting my day job, and we have family health insurance coverage through my employer, but we still have fairly high out-of-pocket medical expenses, so I am leaning toward setting up a Section 105 Health Reimbursement Arrangement (HRA) in our LLC to cover out-of-pocket medical expenses with pre-tax dollars. We need to make a pretty quick decison whether to set up the LLC with both of us as owners or whether we need to set it up with my wife as the only owner. As I read the last paragraph of Answer 2 of IRS Notice 2015-17, I think we can both be owners and still get the deduction using a Section 105 plan. I am using a real estate attorney and a retired IRS agent for tax planning, but while I'm waiting on our tax guy's advice, I wanted to see if any of you had already jumped through these hoops. IRS Notice 2015-17

That should be less of a concern if you are the sole member. Here is a good article discussing the issue: http://www.wnj.com/Publications/Common-pitfalls-to-avoid-when-converting-an-LLC-in