All Forum Posts by: Matt Ruttenberg

 There is more to the formula on how much you can bring in, assuming you're self-employed.

If you're an S-Corp, you can do the 23k as an employEE, then an additional 25% of your salary on top of that, with a maximum of $69k total.  I own a custom 401k administration company if you have more questions.

If you or your husband open up a business, you can roll your 401k into a self-directed solo 401k.  I'm a 401k administrator if you want to jump on a call with your advisor and I to go over that option.

 I would say millionaire is slightly a loose term, but I think that's somewhat a loaded question.  Are you a business owner, real estate investor, all of the above?  Maybe a little more clarity on your situation.

I work with mostly high net worth business owners, and we use different plans to keep it on their balance sheet.  Life Insurance is a good tool when paired with other strategies.

I would probably lean towards a loan against the 401k, but not liquidating it.  You'll be able to take out half of your vested balance though, so not a ton.

If you liquidate it, you're going to have to pay 10% (assuming you're under 50 years old) + taxes owed if it's pre-tax.

So maybe a combination of the two using a HELOC on the equity.

Is the 401k in the Roth portion by any chance?

 Im a 401k administrator, I'm curious why the returns are low?  Who is the record keeper it's invested with?  Is there no way to make changes to the plan.

If it's a smaller business, you should be able to ask them to add additional index funds inside the plan.

Ill explain a setup that my CPA told me to do, and then you can decide if you want to touch base.  I have a similar setup, but not for real estate, so it might not be 100% relevant.

1) My partner and I set up a Partnership (ill tell you why next).  2) Then each of us set up S-Corporations, which is also owned by our wive's (could be owned by a trust for further protection, but I haven't).

The reason we did a Partnership is for two reasons 1) You don't have to abide by the ownership % for your distributions (mostly), and 2) it can be owned by another corporation (S-corp can't).

Again, this isn't for real estate, and could change because it's passive versus active income, but with our personal S-Corps, we can set up different strategies that i won't get into here.

Feel free to reach out and I can introduce you to him.  

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Hey Zachary,

I'm not a CPA, but I work with a bunch of them as I'm a 401k administrator.  If you want, we can connect and I can see which ones might be a good fit.  

But in the meantime, here is a phenomenal podcast you might want to listen to: https://www.taxsavingspodcast.com/.

Most in depth tax podcast I've listened too.  But full disclosure, I've been a guest on there multiple times.  The host owns a accounting firm, and a software called TaxElm that be what you need on it's own.

Feel free to touch base if you want an opinion on a few others.

Hey @Will Seaman, I would definitely look into a tax professional that goes beyond tax prep. 

I'm a 401k administrator and see lots of clients come in who are missing out on basic deductions and credits because the tax preparer "doesn't look up" if you know what I mean.  Some accountants simply don't have the bandwidth for it.  

I have a number of contacts you could work that would be helpful.  Feel free to reach out if you'd like an intro.

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