A self-directed IRA gives you more investment options and lets you invest in alternative assets like real estate, crypto, and private equity. The downside is that every investment has to go through a custodian. You don’t have checkbook control. If you find something you want to invest in, you have to instruct your custodian to send the […]
In 1999, Peter Thiel bought 1.7 million “founder’s shares” of PayPal for $1,700 with his Roth IRA. Within three years, PayPal went public and was acquired by eBay. His initial $1,700 investment turned into $28.5 million. Peter then used that money to make further investments from within his Roth IRA. He invested $500,000 into Facebook, […]
To calculate your 2022 and 2023 required minimum distributions for your IRA or 401k, use the RMD table below and follow the steps. How to calculate your RMD Example Let’s say that in 2023, you turned 75 years old. And on December 31, 2021, your 401k account balance was $200,000. Based on the RMD chart […]
Most individual retirement accounts (IRA) require that you start taking distributions from your account once you reach the age of 73. If you don’t, you’re hit with steep penalties each year you fail to take your RMD. The Roth IRA is the only exception. You don’t have to take any distributions from your account as long […]
If you’re a business owner and are eligible for a solo 401k, you might be wondering how it fares against other more popular retirement plans like the traditional and Roth IRAs. This is not a fair comparison since a solo 401k is the far superior account with higher contribution limits, investment options, and doesn’t have […]
You’re allowed to contribute to both an employer-sponsored retirement (like a 401k or solo 401k plan) and an IRA (both Roth and traditional) in the same tax year. However, there are some instances where your IRA contributions can get restricted or lose the ability to receive a tax deduction. Are you eligible for a solo […]
An IRA is one of the easiest ways to reduce your taxable income since anyone with earned income can open and contribute to an account. The full amount of your contribution to a traditional IRA is tax deductible, which in 2023, can be up to $6,500 if you’re under 50 years old, and up to […]
A question we get often is: When can I withdraw from my IRA or 401k without penalties? Retirement accounts like a traditional and Roth IRA, and a 401k, generally have an early distribution penalty tax of 10% when you take a withdrawal before the eligible withdrawal age of 59½. Roth IRAs have an additional 5-year […]
If you have an IRA with Vanguard and are considering moving your assets to a self-directed solo 401k, here are the steps to performing a rollover without triggering any taxes and penalties. Steps to move your Vanguard IRA to a self-directed solo 401k To transfer your funds from your Vanguard IRA, you must send them […]
