401k-QRP & Solo 401k
contributions to a Checkbook-Control Qualified Retirement Plan – a Checkbook 401k-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 QRP-401k & 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 “QRP & Solo 401k Contributions: Understanding & Optimizing”
A Self-Directed Solo 401k With Checkbook Contro
l is a powerful tax planning tool, providing $10,000’s – up to $122,000 of annual tax deductions. Since the passing of tax reform in 2017, the Checkbook 401k has become even more important, as a key tool for maximizing Section 199A Qualified Business Income 20% tax-deductions
. For key 2018 year-end tax strategy and tips, listen to Commercial Real Estate Pro Network Show Episode 172: Solo 401K with Bernard Reisz
and J Darrin Gross. Continue reading “Podcast: Solo 401k 2018 Year End Tax Strategy & FAQ”
Both syndicators and passive real estate investors will benefit from education about the incredible opportunity presented by Self-Directed IRAs and 401k plans, as well as the IRS guidelines that govern them. For a syndicator-centric perspective of SDIRA and SD401k real estate investing
, listen to this episode of The Real Estate Syndication Show
, hosted by real estate investor and syndicator Whitney Sewell
of Life Bridge Capital
. Continue reading “Podcast: Checkbook IRA & 401k For Real Estate Syndicators”
A comprehensive 2018 Tax Filing Calendar for self-directed retirement plans
, businesses, exempt organizations, trusts and estates, and individuals. Continue reading “Self-Directed IRA & 401K Investor 2018 Tax Filing Calendar”
, Checkbook-Control IRAs
, and IRA-LLCs
are powerful alternative investment
vehicles with great tax benefits. However, for those that qualify, Checkbook 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 “Checkbook Solo 401k: Is It Better Than A Self-Directed IRA?”
QRPs & Checkbook Self-Directed Solo 401k Plans
, also known as Checkbook QRPs
, provide a great feature that can be leveraged in so many ways: A Checkbook QRP & Solo 401k Loan
. The loan proceeds can be used to finance anything you’d like
and the interest payments are made to yourself in the form additional deposits to your tax-sheltered QRP
. Think of it as a QRP line of credit
, requiring no bank underwriting, credit checks, or paperwork processing.
Checkbook 401k Loan Interest Payments can be viewed as a way to make backdoor contributions – beyond the Solo 401k contribution limits – to your Checkbook Solo 401k tax advantaged retirement accounts. Once those interest payments are paid to your Solo 401(k) plan or QRP, those funds become additional plan assets that can be invested tax-free.
- Do you have debt to pay off?
- Do you want to purchase a new vehicle?
- Pay for education?
- Or, would you like to make an investment outside your QRP or Solo 401k?
The Checkbook Control QRP & 401k loan feature is your best option and in this post will cover all that you need to know to legally take advantage of this Checkbook QRP feature. Continue reading “QRP & Solo 401k Plan Loan: FAQ & Answers”
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”
A Self-Directed Solo 401k Plan With Checkbook Contro
l is a powerful tax and investment tool that can be used only by those with self-employment income and no full-time employees. It is a Qualified Retirement Plan
, or One-Participant 401(k) QRP
, covering a business owner with no employees, or that person and his or her spouse. These plans have the same rules and requirements as any other 401(k) QRP, but doesn’t need to perform nondiscrimination testing for the plan, since there are no employees who could have received disparate benefits. This exemption from non-discrimination testing empowers you to maximize the incredible strategies available to QRPs for your financial benefit. Following are common questions and answers regarding SoloK eligibility, benefits, and operations. Continue reading “Self-Directed Solo 401k Common Questions”