LLC stands for Limited Liability Company, and it’s one of the most common business structure in the U.S. An LLC, and any other business structure is eligible to open a solo 401k. However, there’s a small difference in how employer contributions get calculated depending on if your LLC is incorporated or taxed as a sole proprietorship. […]
OVERVIEW Purchasing real estate through a retirement account like the solo 401k can be extremely tax-advantageous. Not only do you get tax deferrals until you retire, you also get tax-free withdrawals if you purchase through a Roth solo 401k. In other words, you don’t pay tax on any rental income that your property makes, you don’t pay […]
OVERVIEW With tax-free compounding and tax-free withdrawals in retirement, a solo 401k is one of the best retirement accounts to hold high-growth assets. You don’t pay any taxes when you sell assets in your account (tax-free compounding), and with the Roth solo 401k account, you pay zero taxes on when you withdraw from your account […]
In 2014, the IRS released IRS Notice 2014-21, which determined that cryptocurrencies are classified as property for federal tax purposes, rather than as currencies. Like any property, buying or selling of cryptocurrencies are subject to capital gains tax. If you buy bitcoin at $10,000 and it rises to $60,000, you’ll be taxed on your capital gain […]
OVERVIEW There are only two eligibility requirements for a solo 401k: Business owners with any type of business entity can open a solo 401k as long as they generate income and they don’t have employees. But what happens if you decide to hire a full-time W-2 employee, and you’re no longer self-employed? Can you keep your account, or […]
OVERVIEW The IRS does not define what you’re allowed to invest in through your solo 401k. Anything goes with a few exceptions. A solo 401k account is not allowed to invest in collectibles, S corporation stock, and life insurance investments. The solo 401k comes with total investment freedom. Unlike something like a traditional 401k, you’re not limited […]
OVERVIEW The solo 401k plan requires that you must not have any full-time W-2 employees in your business that works over 1,000 hours per year. There is only one exception to this rule: Your spouse. Having your spouse work in your business can double your contribution limits for your household. Here’s everything you need to know about including your […]
OVERVIEW & FAQ While a solo 401k gives you total freedom in what you can invest in, the IRS sets strict restrictions around who the plan can make transactions with. In a solo 401k, the assets are owned by the plan, not you or your business. When you open a solo 401k account, the plan registers for its own Employer Identification […]