All Forum Posts by: Olivia Dansereau

Is it possible to my solo 401k to co-invest with my daughter's SDIRA? I wasn't sure if this was prohibited as neither of us benefit, only the retirement accounts see a return. 

I'm wanting to open an SDIRA for my child as I pay her a small wage here and there to help with admin activities  (envelope stuffing, etc) but would also like to use that SDIRA as a minority holder on investments so that I can help boost her retirement account from a young age. 

Any ways to make this happen without getting into trouble? 

@Brian Eastman 

This would be lending to an entirely new LLC that I have never been a party to, and the person receiving the funding is not a disqualified person. Any idea where I can find the maximum loan fee that I can charge? Several hard money lenders in my state charge 10% or more as an origination type fee at closing, just trying to stay within the allowable framework while getting maximum funds to roll back into the 401k.

Or is there another avenue you can recommend for something of this nature? I'm new to researching all of this and I'm in a dither at the thought of a tax bill well into the 6 figures this year. 

If my solo 401k lends private/hard money to an investor, am I able to charge a percentage of the profits as well as interest? In my state the interest rate is capped at 12%. Also, what about up front fees? I can't seem to find regulation governing those amounts. 

I want to stash as much as possible into my 401k but don't want to get hit with UBIT taxes. 

I also have the option of buying a share of the business directly but was told this would trigger additional taxes whereas lending on a note would not. The investor and I have agreed to a 60/40 split  (I'm at 60%) so I'm trying to find the best way to structure this without triggering UBIT. 

I am currently working on finding a way to shelter funds from taxation. Can any of you chime in on my plan?

I own a 50% in an s-Corp that my partner will buy me out of. He will convert s-Corp into an LLC. I will open a self-directed solo 401k in another business that I own 100% of. I would like the 401k in my business to purchase back a portion of the business that my partner will buy me out of and then have that portion of the business profit flow through directly into my 401k. From everything I have read this is acceptable as it would now be considered an arms length transaction as I will have no interest in the business at the time my 401k invests in it.

I am in Western  WA and am trying to find a knowledgeable CPA that is familiar with this type of set up, as well as as good bookkeeper. 

Any insight or referrals would be great. Thanks for sharing your knowledge!