All Forum Posts by: Dmitriy Fomichenko

@Zehua Zhou,

You can use a Fidelity non-prototype account to manage the rentals, but it will have some of the features available with the bank's checking accounts, such as having a debit card, mobile deposit, and bill pay. Those are nice features to have, but they are not must-have, and you should be OK. If you later decide that you do need a bank account - you can always open one. 

@Zehua Zhou, you don't need the FBO part; keep your name out of it. But if you want complete anonymity, use a land trust. Obtaining an adequate amount of liability coverage should cover liability concerns. 

@Sean Grady, the entire IRA may be disqualified. The IRA will be subject to potential income taxes, a 10% early withdrawal penalty, and fines and penalties for not reporting the transaction.

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@Zehua Zhou, call me on Monday and I will clarify it for you.

@Account Closed, you may have misunderstood Zehua's question. He is not trying to open a personal account; he is trying to open an account for the 401k, which is a qualified retirement plan and needs a separate account. One must not commingle personal and retirement funds. 

@Zehua Zhou,

We're hosting a webinar on supercharging your Roth soon; watch for it!

Regarding your questions about IRA LLC. The structure is known as "Checkbook IRA". When using this structure for investments, the key is to complete IRS Form W9 properly. The correct way is to use the EIN of the IRA custodian instead of EIN of the LLC. As a result, any income reported will be tax exempt.

@Zehua Zhou, the setup would make sense if it was an IRA. But with the 401k, you don't need a custodian or third-party administrator (TPA). Moreover, you don't need an LLC to get the checkbook control. What you need is a truly self-directed Solo 401k plan!

Once established, you will be designated trustee of the 401k and will have full control over it, without any middleman. Simple, convenient, and cost-efficient! Again, remember the KISS principle (keep it simple)!

@Zehua Zhou,

It appears you are setting up the bank account incorrectly, which will come back and bite you... send me a PM so we can connect and I'll guide you.