Tag: Individual K

Checkbook Solo 401k-QRP: 2021 Year End Maintenance

Posted on by ReSure Financial

QRP & Solo 401k Contribution Deadlines

Note: 401k Plan documents are due for complete restatement. Please be sure to read the info about this by scrolling to the bottom of this page.

Checkbook Solo 401K and Checkbook SEP-IRA Contribution Deadline. The deadline for contributions to Self-Directed Solo 401(k) Plans and Self-Directed SEP-IRAs is the tax return due date of the business sponsoring the plan, including extensions. 

  • The contribution deadlines depend on the type of business that sponsored the plan – sole proprietorship, partnership, S-corporation, C-corporation, or LLC taxed as any of the foregoing – and whether you timely file for a tax return filing extension.
  • Filing extensions are especially helpful for those that want to make 2021 contributions, but don’t yet have funds available to do so by the initial required filing date. Continue reading “Checkbook Solo 401k-QRP: 2021 Year End Maintenance” →

Checkbook Solo 401K: Year End 2017

Posted on by ReSure Financial
Happy New Year to All!
 
2017 has been an exciting year for checkbook control – from the explosive emergence of Cryptocurrency to Tax Reform – we in the self-directed retirement community have had a stake in the evolution of the investment and tax landscape. In this post we’ll highlight how 2017 regulatory events relate to Checkbook Solo 401k investors and provide year-end tax planning tips.

Continue reading “Checkbook Solo 401K: Year End 2017” →

QRP & Solo 401k Plan Loan: FAQ & Answers

Posted on by ReSure Financial
QRPs & Checkbook Self-Directed Solo 401k Plans, also known as Checkbook QRPs, provide a powerful feature that can be leveraged in so many ways: A Checkbook QRP & Solo 401k Loan.

QRP Loan Proceeds can be used to finance anything you’d like and the interest payments are made to yourself in the form additional deposits to your tax-sheltered QRP. Think of it as a QRP line of credit, requiring no bank underwriting, credit checks, or paperwork processing. (Caveat: Of course, it’s NOT truly a “line of credit” and that calling it a line of credit  can be misleading. More on that below.)

Checkbook 401k Loan Interest Payments can be viewed as a way to make backdoor contributions – beyond the Solo 401k contribution limits – to your Checkbook Solo 401k tax advantaged retirement accounts. Once those interest payments are paid to your Solo 401(k) plan or QRP, those funds become additional plan assets that can be invested tax-free.

  • Do you have debt to pay off?
  • Do you want to purchase a new vehicle?
  • Pay for education?
  • Or, would you like to make an investment outside your QRP or Solo 401k?

The Checkbook Control QRP & 401k loan feature is your best option and in this post will cover all that you need to know to legally take advantage of this Checkbook QRP feature. Continue reading “QRP & Solo 401k Plan Loan: FAQ & Answers” →

Self-Directed Solo 401k Common Questions

Posted on by ReSure Financial
A Self-Directed Solo 401k Plan With Checkbook Control is a powerful tax and investment tool that can be used only by  those with self-employment income and no full-time employees. It is a Qualified Retirement Plan, or One-Participant 401(k) QRP, covering a business owner with no employees, or that person and his or her spouse. These plans have the same rules and requirements as any other 401(k) QRP, but doesn’t need to perform nondiscrimination testing for the plan, since there are no employees who could have received disparate benefits. This exemption from non-discrimination testing empowers you to maximize the incredible strategies available to QRPs for your financial benefit. Following are common questions and answers regarding SoloK eligibility, benefits, and operations. Continue reading “Self-Directed Solo 401k Common Questions” →

How to Manage Real Estate in Your SDIRA, Solo 401k, or Defined Benefit Plan

Posted on by ReSure Financial
Real estate is the most popular asset for self-directed retirement accounts and is a great long-term investment. Efficient and compliant management of real-estate properties owned by Real Estate Retirement Accounts, particularly when there are multiple owners, can be achieved in several ways, which will be outlined in this post.

Continue reading “How to Manage Real Estate in Your SDIRA, Solo 401k, or Defined Benefit Plan” →

Self-Directed Real Estate Retirement Accounts For Real Estate Agents

Posted on by ReSure Financial
Checkbook 401k plans, Checkbook IRAs, Checkbook QRPs and other self-directed retirement accounts that allow real estate investing with tax advantaged funds should be part of every real estate agent’s financial plan. This article will introduce the fundamentals of such accounts and the opportunities they present for those that have an insider’s view of the real estate market.

What Are Self-Directed Retirement Accounts?

Self-directed retirement accounts, which can be in the form of IRAs or Qualified Plans, allow you to use retirement money for non-traditional investments and retain all the tax benefits of those vehicles. Real estate investing is by far the most popular investment for such accounts, with other common assets being real estate secured private loans, private loans, hard money loans, mortgage notes, and tax liens – all of which are forms of income generation from real property. Continue reading “Self-Directed Real Estate Retirement Accounts For Real Estate Agents” →

Private Lending IRAs: The SDIRA Checkbook Retirement Account Advantage

Posted on by ReSure Financial

Private Lending IRAs and Checkbook Control

Private lending is the ideal investment for an IRA…and less than ideal outside of an IRA.

Understanding why that’s the case – and why a checkbook control IRA is crucial to maximizing private lending investment returns – requires an understanding of tax and investment concepts. In this post we’ll cover the income tax treatment of private lending inside and outside of retirement accounts (IRAs, Solo 401k plans) and why a Self-Directed IRA with Checkbook Control is the IRA you need for private lending. Additionally, if you’re a real estate investor, you’ll learn how to get funding for deals by leveraging the IRAs of private lenders. Continue reading “Private Lending IRAs: The SDIRA Checkbook Retirement Account Advantage” →

Mega Backdoor Roth ReSure Checkbook 401k vs. Checkbook IRA

Posted on by ReSure Financial
In this post you’ll learn how to use a QRP, 401k, or Solo 401k to get up to $120,000 into Roth retirement accounts (Mega Roth), annually. If you don’t already know the value and power of that – this is a must read. If you already know and appreciate the value of tax-sheltered & tax-free Roth retirement accounts, this post is a must-read. Continue reading “Mega Backdoor Roth ReSure Checkbook 401k vs. Checkbook IRA” →

Solo 401K Eligibility: Are Parents and Children Related? Controlled Groups

Posted on by 401K Checkbook
I’ve got a pal who whose got a great gig going. It’s a “side-business” that nets him about $120K a year. Prime candidate for an Individual K. He’s got lots of discretionary income to invest and needs to reduce his current taxable income. At his job (read: W-2) he gets to invest his 401k in loaded mutual funds to which he’s been reducing his contributions as he increases his allocation to real-estate and other alternatives.

Sounds like a great candidate for a Checkbook Control Solo 401K! Between him and his spouse they could sock away tens of thousands of dollars in their Solo K and invest tax free in real estate (remember no UDFI on leveraged real-estate in a 401k!). BUT, NOT SO FAST. Here’s the catch, my buddy’s W-2 comes from his Dad’s company, which has several hundred people on payroll and the IRS has got a tool known as the Controlled Group Rules which result in ownership of businesses being attributed  to relatives for tax purposes. This could potentially make a child’s Qualified Retirement Plan – QRP – subject to anti-discrimination testing based on their  parent’s employees, making them ineligible for a Solo 401k – intended for an owner-only business, with no employees.

To resolve this matter, Congress provided a handy reference known as the Internal Revenue Code (IRC). The Internal Revenue Code defines  family relationships in several places…so we’ve got to interpret the conflicting definitions and determine which of those apply. (Hint: It depends…)

[If “con” is the opposite of “pro,” what is the opposite of “progress?”….answer at the end of the post:)] Continue reading “Solo 401K Eligibility: Are Parents and Children Related? Controlled Groups” →

Beyond Prohibited Transactions: The Plan Asset Rule

Posted on by 401K Checkbook
Checkbook QRP,  self-directed Solo 401k and checkbook-control IRA investors are aware (I hope that’s true) of the Prohibited Transaction Rules and Disqualified Persons discussed in IRC 4975. So, if you’re familiar with IRC 4975 are you covered? Or, do you need to know more than that to stay in compliance and protect your assets?

The Plan Asset Rule

There’s a lesser known extension of IRC 4975 in the Code of Federal Regulations that discusses something known as the Plan Asset Rule. In a nutshell, the Plan Asset Rule says that when retirement plans own a “significant” share of an entity, all of that entity’s assets are treated as assets of the retirement plans for purposes of the prohibited transaction rules.

The implications of this can be staggering; if retirement plans collectively own a significant portion of an entity, all the disqualified persons of all the retirement plan investors are disqualified persons to that entity. Continue reading “Beyond Prohibited Transactions: The Plan Asset Rule” →

Beyond Prohibited Transactions: The Exclusive Benefit Rule

Posted on by 401K Checkbook
Among the first concepts introduced to self-directed IRA and Solo 401(k) investors are “prohibited transactions” and “disqualified persons.” While those are certainly key concepts, there are several others to be aware of; among those is the “Exclusive Benefit Rule.” Continue reading “Beyond Prohibited Transactions: The Exclusive Benefit Rule” →