OVERVIEW If you want to check your 401k balance, start by asking your employer’s HR department for information about the plan provider. In most cases, you’ll be able to log into the plan provider’s website to check your balance, and even reallocate your investments. Regularly checking the balance of your 401k plan gives you a […]
When you contribute to a 401k or 403b retirement plan, you can choose whether they’re pre-tax contributions or after-tax contributions. If you choose pre-tax deferrals, your contributions get deducted from your taxable income. You get to pay less taxes the year you contribute, but you’ll have to pay taxes when you withdraw from your account […]
Taking advantage of the mega backdoor Roth IRA can accelerate any employee’s retirement savings. However, not all employees are able to take advantage of this option. It entirely depends on how your company’s 401k plan is set up. In order for a company’s employees to be able to get a mega backdoor Roth IRA, it needs to […]
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 […]
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 […]