Solo 401(k) and the UBIT Rules: What Investors Need to Know
One of the biggest advantages of using retirement funds—such as a Solo 401(k), 401(k), or IRA—to make investments is that, in most cases, all income…
Can a Solo 401(k) Reduce Self-Employment Tax?
One of the more common questions we receive from self-employed business owners seeking to establish a Solo 401(k) plan is whether it can reduce…
Solo 401(k) Tax Filing Rules
The major question to address when it comes to Solo 401(k) tax filing is: Are there any annual tax filing requirements for the plan? Since a Solo…
Does a Solo 401(k) Have the Same UBTI Rules as a Self-Directed IRA LLC?
Yes and No. Like an IRA, the tax advantage of a Solo 401(k) Plan is that income is tax-free until distributed. In general, an exempt organization is…
Correcting a Prohibited Transaction
When using a Self-Directed IRA or Solo 401(k) plan to make alternative investments, you must pay attention to all the rules set forth by the IRS.…
Is ERISA Testing Required for a Solo 401(k) Plan?
A business owner with no common-law employees, who adopts a Solo 401(k) plan, is generally not required to perform ERISA nondiscrimination testing…
What is a Solo 401(k) Prohibited Transaction?
The Internal Revenue Code (IRC) & ERISA does not describe what a Solo 401(k) Plan can invest in, only what it cannot invest in. Internal Revenue…
Is my Solo 401(k) Plan Subject to the Corporate Transparency Act (CTA)?
The Corporate Transparency Act (CTA), which was established in 2021 and is set to become law on January 1, 2024, is the most far reaching set of…
What is Unrelated Business Taxable Income (UBTI)?
The tax advantage of an IRA is that income is tax-free until distributed. In general, an exempt organization is not taxed on its income from an…