Self-Directed IRAs, Checkbook-Control IRAs, and IRA-LLCs are powerful investment vehicles with great tax benefits. For those that qualify, Solo 401K Plans are far better vehicles for retirement-account real estate investing. In this post will introduce the fundamentals of Checkbook Solo 401k Plans and their benefits. Continue reading “Solo 401k: What Can Be Better Than A Self-Directed IRA?”
One of the most attractive features of a Self-Directed Solo 401k is the Checkbook 401k Loan feature. The loan proceeds can be used to finance anything you’d like and the interest payments are made to yourself. In fact, SD401k loan interest can be viewed as a way to make backdoor contributions – beyond the contribution limits – to your Solo tax advantaged retirement accounts. Once paid to the your 401(k) plan, those funds will grow tax deferred or tax free.
Do you have debt to pay off? Do you want to purchase a new vehicle? Pay for education? The Checkbook Control 401k loan feature is your best option. In this post will cover all that you need to know to legally take advantage of this checkbook-control feature. Continue reading “Solo 401k Loan FAQ”
How To Open a Bank Account For Your Checkbook Solo 401k
Opening a bank account for a Checkbook Control Solo 401(k) Plan should be straightforward. However, being that many bankers are unfamiliar with Checkbook Control Solo 401K Plans and Checkbook Control IRAs, opening bank accounts for these retirement plans can seem complicated.
The most important thing to convey to your banker is that they are just opening a business account for a trust.
In this post we’ll provide all the info you and your banker need to set up accounts for your Self-Directed Solo 401K Trust. Continue reading “How to Open a Solo 401K Bank Account”
Self-Directed IRA-LLCs and Solo 401k Plans can buy and sell Bitcoin and other cryptocurrency the same way they can invest in real estate, private equity, tax liens, stocks, and mutual funds. The process for investing in Bitcoin, Ethereum, Litecoin, Zcash, Dash, Ripple XRP, Monero and all other cryptocurrencies is the same as when purchasing them outside of retirement accounts. Ownership of the asset should vest in your IRA-LLC or Solo 401(k) Trust and not in your personal name. Continue reading “How To Buy Bitcoin Using an IRA-LLC or Solo 401k”
What type of funds can be contributed to a Solo 401k Roth account?
There are many sources of funds for Self-Directed Solo 401k plans and most – but not all – can be contributed to the Roth Solo 401k subaccount. Following are eligible sources of funds for a 401(k) Roth account: Continue reading “Roth Solo 401k Contribution Guide”
What is a Roth Solo 401k Plan? What is a Solo 401k Plan?
Understanding Roth Solo 401(k)s requires that we first understand the basics of regular Solo 401k plans.
A 401K plan, named after Section 401(K) of the Tax Code, is a Defined Contribution retirement plan that allows employees to choose (“elective deferral”) to contribute all or part of their compensation to a tax advantaged account and exclude the amounts contributed from current income. The tax code calls this a “cash or deferred arrangement,” or CODA. A 401k plan can be combined with other types of plans to allow for many forms of plan contributions. The typical 401(k) Plan provides for employer profit sharing contributions, in addition to employee contributions. Self-Directed Solo 401(k) Plans are 401(k) plans for businesses that don’t have full-time employees other than business owners and their spouses, which can designed to include very attractive features such as Roth 401k Contributions and After-Tax Employee Contributions.
What is a Roth 401k Plan?
What is a Self-Directed IRA?
A self-directed IRA, or SDIRA, is an IRA that can be invested in assets that are not available on brokerage platforms. The most common SDIRA investment is real estate, but an SDIRA can hold private loans, private stock, tax liens, tax deeds, mortgage notes, livestock, mineral rights and nearly anything else. Section 408 of Tax Code disallows only life insurance and collectibles for IRAs; everything else is allowed. In addition, S-corp regulations don’t allow IRA shareholders for small business corporations. Self-directed IRAs are held by specialized trust companies that are qualified to administer such accounts.
What is an IRA-LLC? What is Checkbook-Control? Checkbook Control IRA?
Did you know that you can use a Traditional IRA, Roth IRA, SEP-IRA, SIMPLE-IRA, or HSA to invest in real estate tax free? Do you know the difference between a Traditional IRA and Roth IRA? In this post you’ll get an overview of these accounts and how you can use a self-directed IRA with checkbook control for real estate investing.
What is NOT a Self-Directed IRA?
Self-Directed Solo 401k Plans With Checkbook Control are the retirement plan for those with self-employment income and no full-time employees. Following are common questions and answers regarding SoloK eligibility, benefits, and operations. Continue reading “Self-Directed Solo 401k Common Questions”
Real estate is the most popular asset for self-directed retirement accounts and is a great long-term investment. Efficient and compliant management of real-estate properties owned by Real Estate Retirement Accounts, particularly when there are multiple owners, can be achieved in several ways, which will be outlined in this post.