Ocho Learning Center

Solo 401k
February 03, 2023
What Is A Solo 401k?

The highest contribution limits, ability to invest in any asset class with tax-free compounding, and a supersized Roth account.

March 24, 2023
How To Claim The Home Office Tax Deduction (Simplified vs Regular Method)

In the US, there are two methods to calculate home office expenses: the Simplified Method and the Regular Method. Each method has its own rules and calculations, and pros and cons depending on your circumstances. Let’s go through them below. The Simplified Method is the simpler and easier method of taking a home deduction because […]

March 24, 2023
401k Rollover: How It Works, Rules, and Tax Implications

If you have assets in a 401k plan and are approaching retirement or considering leaving your employer, there are several options you can take. You can take a withdrawal, keep the old 401k (if your former employer allows it), or do a 401k rollover into an IRA or another 401k plan. Table of ContentsWhat is […]

Solo 401k +1 401k
March 22, 2023
What Is An After-Tax 401k?

Most 401k plan providers will offer two different contribution options: Traditional pre-tax and Roth post-tax. Traditional pre-tax contributions are funded with pre-tax income, give you a tax deduction for the year, and grow tax-deferred. When you withdraw in retirement, it gets taxed as regular income. Roth post-tax contributions are funded with post-tax income, and don’t […]

Roth IRA
March 21, 2023
The Backdoor Roth IRA: How It Works And How To Set It Up

Having a large nest egg in a Roth IRA means you can enjoy tax-free income in retirement. Roth retirement accounts, like a Roth IRA, are funded with after-tax dollars (money you’ve already paid income taxes on), and in retirement, your withdrawals are completely tax-free. Unfortunately, the Roth IRA has an income limit that restricts high-income individuals from […]

Solo 401k
March 21, 2023
The Mega Backdoor Roth Solo 401k Explained

OVERVIEW The mega backdoor Roth strategy using a solo 401k allows you to supersize your Roth solo 401k contributions each year. With a solo 401k account, you’re allowed to contribute up to $20,500 in 2022 into a Roth solo 401k. If you’re at least 50 years of age, you can contribute up to $27,000. For 2023, […]

mega backdoor roth
Retirement +2 401k Roth IRA
March 21, 2023
The Mega Backdoor Roth Explained

OVERVIEW Roth retirement accounts like a Roth IRA and Roth 401k are extremely tax-advantaged. You get tax-free compounding and you don’t have to pay any taxes when you withdraw from your nest egg in retirement (no matter how large your gains). There are people who’ve turned a few thousand dollars into millions inside Roth accounts. […]

what is retirement plan
March 07, 2023
What Is A Retirement Plan? (Different Plan Types Explained)

Retirement accounts are tax-advantaged investment accounts. Your money grows with tax-free compounding until retirement when you can start taking qualified distributions at the age of 59½. Depending on the type of retirement account, you could either get a tax benefit when you deposit money or when you withdraw. There are many different types of retirement […]

March 02, 2023
The 3 Kinds Of Cash Account Trading Violations (And How To Avoid Them)

When you’re trading in your cash account, there are 3 different types of violations that you need to be aware of. With a cash trading account, you’re required to pay for all purchases in full by the settlement date, which is the day in which the trade becomes finalized. The settlement date is different from […]