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Terms of Use

Okay, here it goes in English. You know, the kind that people actually speak:

I am not your Attorney, CPA, Tax Advisor, Tax Preparer, or Investment Advisor. In fact, I am not anybody’s Attorney, CPA, Tax Advisor, Tax Preparer, or Investment Advisor. I am an educator, publisher, author, investor, entrepreneur, novice capoeirista, guitarist, racquetball player, skier, snowboarder, tennis player, and rat terrier owner… but I am not your professional advisor.

None of the information I publish or distribute is intended or allowed to be used as a replacement for the professional advice you would receive from any of those previously mentioned advisors. Do, however, feel free to use this information to educate yourself, enrich your perspective, and better prepare yourself to productively work with your advisors.

Comments»

1. Rose - August 29, 2008

I’m thinking about transferring retirement funds from a self-directed IRA to a 401K in the name of an already established Sole Proprietorship. I would like to create an LLC owned by the proprietorship in order to allow checkbook control as well as the other benefits that the 401K offers — therefore I would be the manager of the LLC and would need two business accounts — right?

When I file the documents for the new LLC, what name should be listed as owner of this new LLC?

2. Jeff Nabers - September 3, 2008

Rose@ – A sole proprietorship can adopt a Solo 401k. The Solo 401k can invest into an LLC, but the LLC cannot be owned by that sole proprietorship… it must instead be owned by the Solo 401k trust itself and/or non-disqualified persons. If your Solo 401k invested into an LLC this is how it would work:

You have a sole proprietorship. It likely is associated with your SSN. The sole proprietorship adopts a Solo 401k plan. The plan assets are handled by a 401k trust which gets its own EIN (tax ID number). You invest in an LLC (which could get its own EIN) and you can be the manager of the LLC.

But all in all, if you are trying to simply gain checkbook control, the LLC is unnecessary. You can have your Solo 401k restated using special-purpose documents that allow for you to be trustee & that allow for unrestricted investment options. For some de-confusion, feel free to call my office at 877-903-2220.