![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/514356/small_1695075383-avatar-jimc52.jpg?twic=v1/output=image&v=2)
17 September 2016 | 12 replies
@Jim ChungGood question.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; andBoth 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.)
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/489407/small_1621478975-avatar-jordans33.jpg?twic=v1/output=image&v=2)
5 July 2017 | 4 replies
The other option is that there are services that sell those lists and do the heavy lifting of converting the lists electronic format.
26 April 2018 | 2 replies
You don't need electronic recordings... you need access to Land Records.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/420514/small_1621450645-avatar-jason1221.jpg?twic=v1/output=image&v=2)
4 January 2016 | 13 replies
I am going to look into electronic payments!
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/23550/small_1621362387-avatar-mr_investor.jpg?twic=v1/output=image&v=2)
18 July 2012 | 11 replies
All parties agree that fax and all other electronic signatures and initials are legal and binding.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/172058/small_1684177460-avatar-deanov.jpg?twic=v1/output=image&v=2)
3 February 2019 | 22 replies
All materials are delivered immediately via an electronic down-load.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/27202/small_1621363931-avatar-knr143.jpg?twic=v1/output=image&v=2)
10 April 2015 | 40 replies
I hate to bring this up, but before you go on vacation, you might box up some of your personal stuff (electronics, jewelry, cash, etc.)
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/363696/small_1621446783-avatar-jarrodfrankum.jpg?twic=v1/output=image&v=2)
6 August 2015 | 18 replies
I try to get everyone to pay electronically so I pretty much do a little accounting every month.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2014827/small_1705534477-avatar-tyler_lingle.jpg?twic=v1/output=image&v=2)
13 January 2023 | 6 replies
If the software is not simplifying your life or making you more accurate, you shouldn't use it.Software does have extremely helpful features like online payments, marketing syndication (click a button and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/66781/small_1621413873-avatar-relasvegas.jpg?twic=v1/output=image&v=2)
8 March 2011 | 60 replies
GM also owned Hughes Electronics (now Raytheon).