Every Checkbook Solo 401k investor is impacted by the tax innovation introduced by The Tax Cuts and Jobs Act. The key provision of Tax Reform for Solo 401k adopters to focus on is the new IRC 199A 20% Qualified Business Income – QBI – tax deduction. By definition Solo 401k and QBI go hand-in-hand – and a Solo 401k can help you maximize the value of this impactful tax deduction. Continue reading “Solo 401k & 199A QBI Tax Deduction”
contributions to a Checkbook-Control Qualified Retirement Plan – a Checkbook QRP – have multiple tax benefits: (1)
They are tax-deductible, reducing your taxable income & tax liability to the IRS and (2)
they grow tax-deferred, with no annual taxes on earnings and profits within the Solo 401k.
Tax-deductible Solo 401(k) contributions consist of 2 components: (1) Employee Elective Deferrals and (2) Employer Non-Elective Contributions (profit sharing). However, you may have heard various other terms used to describe 401(k) Plan contribution types. Following is a comprehensive guide to Solo 401k contributions, terms, and calculations. Continue reading “Solo 401k Contributions: Understanding & Optimizing”
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 traditional Solo 401k plans
401K Plans, creatively named after Section 401(K) of the Tax Code
, are Defined Contribution qualified retirement plans
that allow 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 taxable income. The tax code calls this a “cash or deferred arrangement,” or CODA. A 401k Plan can be combined with other types of plans, such as Defined Benefit and Cash Balance Plans
, to maximize tax deductions
and allow for multiple 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 be designed to include very attractive features such as Roth 401k Contributions and After-Tax Employee Contributions.
What is a Roth Solo 401k Plan?
Continue reading “Solo 401K Roth Contribution Q&A”
Checkbook 401k plans, Checkbook IRAs, Checkbook QRPs and other self-directed retirement accounts that allow real estate investing
with tax advantaged funds should be part of every real estate agent’s financial plan. This article will introduce the fundamentals of such accounts and the opportunities they present for those that have an insider’s view of the real estate market.
What Are Self-Directed Retirement Accounts?
Self-directed retirement accounts, which can be in the form of IRAs or Qualified Plans
, allow you to use retirement money for non-traditional investments
and retain all the tax benefits of those vehicles. Real estate investing
is by far the most popular investment for such accounts, with other common assets being real estate secured private loans
, private loans, hard money loans, mortgage notes, and tax liens
– all of which are forms of income generation from real property. Continue reading “Self-Directed Real Estate Retirement Accounts For Real Estate Agents”