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Personal Finance Guides For Business Owners - Ocho

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form 5500-ez
Solo 401k
December 05, 2022
Form 5500-EZ: Why All Solo 401k Plan Owners Should File One

OVERVIEW The IRS requires solo 401k account owners to file Form 5500-EZ each year their plan assets exceed $250,000. The good news is, it’s fairly simple to fill out, only takes about an hour each year, and you could do everything online – not bad considering all the perks and tax advantages the solo 401k gives you. This guide will […]

solo 401k benefits
Solo 401k
December 05, 2022
Solo 401k Benefits & Tax Advantages: Is A Solo 401k Worth It?

SOLO 401K BENEFITS: Considering a solo 401k? Here’s a quick breakdown of every benefit and tax advantage a solo 401k account can give you. High contribution limits The solo 401k has one of the highest contribution limits of any retirement plan. In fact, it’s almost 3x higher than a traditional 401k and over 10x higher than […]

rmd table
Retirement +2 401k IRA
December 05, 2022
IRA And 401k RMD Table For 2023

To calculate your 2022 and 2023 required minimum distributions for your IRA or 401k, use the RMD table below and follow the steps. How to calculate your RMD Example Let’s say that in 2022, you turned 75 years old. And on December 31, 2021, your 401k account balance was $200,000. Based on the RMD chart […]

solo 401k spouse
Solo 401k
December 05, 2022
How To Add Your Spouse To Your Solo 401k Plan

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 […]

business entities solo 401k
Solo 401k
December 05, 2022
What Business Entities Can Open A Solo 401k?

OVERVIEW There seems to be some confusion around what business entities are eligible to open a solo 401k account. Because it’s called a “solo” 401k, and also often referred to as an individual 401k or a one-participant 401k, many people assume that the plan is only for sole proprietors. The good news is, that’s false.  Whether […]

solo 401k loans
Solo 401k
December 05, 2022
Solo 401k Loans Explained: Is It A Good Idea?

OVERVIEW & FAQ A solo 401k loan lets you tap into your solo 401k account and borrow money from your own nest egg. Essentially, you’re lending money to yourself, with the requirement to pay it back, and paying interest on it to the IRS. It doesn’t sound like a great deal, but it can make a lot […]

solo 401k rollover
Solo 401k
December 05, 2022
How Solo 401k Rollovers Work

OVERVIEW A rollover is the fastest, most effective way to fund your solo 401k account. You’re allowed to rollover funds from almost any retirement account, and there are no limits on how much you can rollover. If you’re considering a solo 401k rollover, let’s go through how it works and why you should consider one. […]

sep ira vs solo 401k
SEP IRA +1 Solo 401k
December 05, 2022
Solo 401k Vs SEP IRA

OVERVIEW The solo 401k and SEP IRA are retirement accounts created for small business owners and self-employed individuals. Both have the same contribution limit, tax-free compounding, and allow all business entities to be eligible. However, a solo 401k has many more advantages than a SEP IRA. But not everyone qualifies for one. Depending on your business, one might […]

roth solo 401k
Solo 401k
December 05, 2022
What Is A Roth Solo 401k? Contribution And Tax Differences Explained

OVERVIEW The Roth solo 401k is a retirement account for self-employed business owners where contributions are made with after-tax dollars rather than pre-tax dollars. Think of it like a Roth IRA, except you get a much higher contribution limit and there are no income limitations. Since you’re self-employed, you’re your own boss. You make contributions to the plan […]