Solo 401k Q & A: Answers to questions about the self-directed Solo 401k plan, its rules, regulations, and benefits
Can you personally manage a property that is owned by your qualified plan? The Solo 401k by Sense Financial is an IRS-approved qualified plan. You are trustee of the plan. And as trustee, you direct the investments of the 401k. Our clients often ask questions about investing with the plan and managing the assets of […]
The IRS allows termination of a retirement plan along with the option to rollover funds into a new retirement account. The key is to follow IRS guidelines, plan amendments, which protect the tax-favored status of your retirement plan during termination and ensure that plan participants can, further, rollover the funds to other qualified retirement plans. […]
This diagram explains the step-by-step process of how one can setup and administer truly self-directed Solo 401k plan. First, you need to have legitimate self-employment activity or business in place. The business will act as the sponsor of the plan. Second, the plan sponsor will “adopt” a Qualified Plan (Solo 401k). You will use services […]
Solo 401 K Eligibility Question Can you tell me what happens if one day I decide to hire full time employees in my business? Would I need to terminate the plan? Would I be able to modify the plan documents to convert the trust into a regular 401k? Could the trust continue to live on […]
Question: I am looking for an out of state property to add to my personal 401k portfolio. If I travel there to view and select the property, can I use the retirement fund to pay for travel expenses? Answer: The answer is no for a couple of reasons: – Since the property belongs to your personal […]
Question: How do I decide if I am qualified for a Solo 401k? A 401k for individuals, or a Solo 401k, is designed for individuals who own a small business or have a self-employed activity without a full time employee. This self employed activity or business can be in addition to your full time employment […]
First off I want to thank you for talking with me last week about the Solo 401k Retirement Plan. I do have a few other questions that I forgot to ask. Once again, thank you for answering my questions the other day. 1) Who is the Solo 401k Retirement Plan setup with? We (Sense Financial […]
According to Department of Labor Advisory Opinion in July of 2000, a Self directed IRA can enter a partnership with a disqualified person but not without complication. The original page has discussed the issue in details, with the main points summarized as below. In short, in certain situations a person can have his or her Self […]
I’m in the process of doing a 401k Rollover and have few questions Question: If my 401k Rollover is from a former employer’s 401k plan where the funds were drafted pretax, do I now transfer the funds to the Solo 401k checking or savings account? Does it matter whether it is checking or savings? I […]
Continued from Part I Question: How do I combine retirement funds from the newly formed self-directed Solo 401k with $24,600 and newly formed self-directed Roth IRA of $84,000 held in trust? Answer: The 401k funds will be in the Solo 401k Trust and IRA retirement funds will be held by the custodian. If you choose to, you may […]