Getting access to and rolling over funds from your employer-sponsored 401k to a Checkbook QRP, Solo 401k or Checkbook IRA is doable in many instances, but you’ll have to overcome some obstacles to do so. With the knowledge provided in this post, you’ll be prepared to get the results you want.
Tag: Solo K
Mega Backdoor Roth ReSure Checkbook 401k vs. Checkbook IRA
Checkbook Solo 401k Plans For Real Estate Professionals
Why Is A Checkbook Solo 401k The Best Retirement Plan For Real Estate Professionals?
Checkbook Solo 401k retirement plans, a type of Checkbook QRP for businesses owners that don’t have full-time employees, are the ideal tax advantaged account for real estate professionals: real estate agents, mortgage brokers, real estate wholesalers, and real estate flippers.
Real estate professionals have self-employment income and KNOW REAL ESTATE, making the Checkbook 401k the perfect plan for them. In the post, we’ll present some of the benefits of a Checkbook Control 401k and some Checkbook 401K advanced tax & investing strategies. Continue reading “Checkbook Solo 401k Plans For Real Estate Professionals”
Beyond Prohibited Transactions: The Plan Asset Rule
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
Beyond Prohibited Transactions: The DOL Interpretive Bulletin
Benefiting from tax-advantaged retirement funds before retirement age would be a beautiful thing, especially for those of that leverage the power of Solo 401(k)s and Checkbook IRAs. But, as that would defeat the intent of those accounts, the Prohibited Transaction Rules of IRC 4975 were created. Although written broadly, the innovative investor can contrive many ways to circumvent those rules.
However, beyond the letter of the law, the IRS has some additional tools at its disposal with which to counter creative strategies. Those include the Step Transaction Doctrine, the Exclusive Benefit Rule, and the Plan Asset Rule. For cases in which those rules may not apply, the IRS has the Department of Labor Interpretive Bulletin ERISA IB 75-2. Continue reading “Beyond Prohibited Transactions: The DOL Interpretive Bulletin”