Archive for January, 2012

Is a Solo 401(k) Plan subject to the same UBTI rules as a Self Directed IRA LLC?

January 26th, 2012

Yes and No. Like an IRA, the tax advantage of a Solo 401K Plan is that income is tax-free until distributed. In general, an exempt organization is not taxed on its income from an activity that is substantially related to the charitable, educational, or other purpose that is the basis for the organization’s exemption. Such […]

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Solo 401K – Best Plan For the Self-Employed

January 19th, 2012

A Solo 401K Plan is a qualified retirement plan that offers a self employed business owner with the ability to use his or her retirement funds to make almost any type of investment, including real estate, tax liens, private businesses, precious metals, and foreign currency on their own without requiring custodian consent tax-free! In addition, […]

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Establishing a Solo 401K Plan – What You Need to Know

January 13th, 2012

Not everyone can assist you in establishing a Solo 401(k) Plan.  Like all legal matters, an attorney or tax professional should be involved in the establishment of a solo 401K qualified retirement plan.  – don’t trust a cookie cutter retirement plan that won’t fit your retirement, investment, and tax goals.  Work directly with tax professionals […]

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Using a Solo 401K Loan to Buy Real Estate – How Does it Work?

January 12th, 2012

An individual investor is permitted to use his or her 401(k) plan assets to buy real estate. The IRS has always allowed a 401K or Solo 401K Plan to buy real estate. Internal Revenue Code Section 72(p) allows a Solo 401K Plan participant to take a loan from his or her 401K Plan so as […]

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Solo 401(k) Contribution Limits for 2012

January 12th, 2012

The annual Solo 401k contribution consists of 2 parts, an employee salary deferral contribution and an employer profit sharing contribution. In 2011 the total contribution limit for a Solo 401k is $49,000 or $54,500 if age 50 or older. The total allowable contribution limits are combined to get the maximum Solo 401K contribution limit. Under […]

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