Video: Self Directed Solo 401k July 31, 2008
Posted by Jeff Nabers in : Self Directed IRA Solo 401k , add a commentI recently sat down with Eric Wikstrom – CPA, CFP, & Founder of Integrated Wealth Strategies.
In this segment we briefly discuss the Solo 401k and how it differs from a Self Directed IRA.
The following clip observes the benefits of unrestricted investment choices. (more…)
Borrowing money from your Solo 401(k) May 22, 2008
Posted by Jeff Nabers in : real estate, Self Directed IRA Solo 401k , add a commentSolo 401(k)’s most touted feature is its uniquely large annual contribution limits ($46k – $102k). A lesser known feature may be just as useful for some: participant loans.
What is a participant loan?
A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value with the following terms:
- To be repaid over an amortization schedule of 5 years or less
- Regular payments no less frequently than quarterly
- At a reasonable rate of interest… generally interpreted as prime rate + 1%
Such a loan may only be made in accordance with the Solo 401(k) plan documents. While most plan documents disallow this type of loan, the Unlimited® 401k offered by my company does allow it.
Under what conditions is this allowed?
Any. As long as the plan documents allow for it & the proper loan documents are prepared and executed, a participant loan can be made for any reason.
When is this useful?
This can be useful when (more…)
Loaning money to your IRA/401(k) May 20, 2008
Posted by Jeff Nabers in : real estate, Self Directed IRA Solo 401k , add a commentDo you have an IRA/401k-owned investment property that has a mortgage and negative cash flow?
Something I’ve been running into lately is Self Directed plan investors who speculatively bought a house or condo in previously hot markets (think Vegas, Florida, Phoenix, etc). Some of these areas have experienced declining values and declining rental income for short term rental properties.
If your plan (IRA or 401k) bought a house & obtained a non-recourse mortgage loan qualified based on short term rental income that has declined, you probably have negative cash flow. How can you avoid foreclosure? Loan money to your IRA/401k.
Loaning money to your IRA or 401k
A little known (more…)
Feedburner Subscribe
