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Results (10,000+)
James Maness Apartment Complex
15 August 2020 | 12 replies
Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company  (IRA LLC)must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)
Louis Mannikko Using 401(K) Loan to finance first property
7 September 2016 | 19 replies
Keep in mind, however, that when you pay your 401k payments are made with after-tax funds which means you will have to pay taxes on the interest payments when ultimately distributed form the 401k, usually at retirement. 
Justin C. Hello from Dallas! New Investor Excited to Get Started.
31 August 2016 | 24 replies
B and C-class properties are a bit intimidating, but I've been looking into techniques/tips for tenant screening, which should hopefully alleviate the worst of any potential issues.
Jim Bowser Hello from Detroit, Michigan!
16 September 2016 | 12 replies
If you send me your email address I'll add you the the distribution list for the monthly announcement as well.
Walter Suprey New member
31 August 2016 | 2 replies
Also consider using some other techniques like lease options, contract for deed or subject tos where you don't need financing.  
William Huston What is the best things to look for in your first Broker office?
1 September 2016 | 7 replies
Every sale person is different so different techniques are needed.
Emily Hunt San Antonio TX- licensed or not?
2 September 2016 | 6 replies
I love motivational books/podcasts, but at this point I am looking more for detailed case studies/examples/ and techniques
Matt Inouye RE Held In S-Corp
2 September 2016 | 5 replies
The Corp reports it as a sale of the property held long term and then the distribution of it as well. 
John Burton Yellow Letter Campaigns
2 September 2016 | 4 replies
This became popular as the go-to real estate investor DM technique and most investors just follow this because they think it's the best solution.  
Jonathan Jones Looking to learn the secrets...
4 September 2016 | 2 replies
I hope to be able to gleam from some of your ideas and techniques so that I can utilize tactics in my space of business.The new guy from MD!!