Solo 401k Q & A: Answers to questions about the self-directed Solo 401k plan, its rules, regulations, and benefits
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 […]
I have a few more questions since all my funds are not qualified for solo 401k Rollover. Question: I have Scudder SEP IRA with $14,000, Janus SEP IRA with $9,000 and Teamster Pension $1,600. There is a cost to set up Solo 401k, then combine and put all these into one account. Do I pay the set up fee […]