OVERVIEW The IRS does not define what you’re allowed to invest in through your solo 401k. Anything goes with a few exceptions. A solo 401k account is not allowed to invest in collectibles, S corporation stock, and life insurance investments. The solo 401k comes with total investment freedom. Unlike something like a traditional 401k, you’re not limited […]
Any business structure is eligible to open and contribute to a solo 401k plan as long as they meet the basic eligibility rules, and that includes multi-member LLCs. To qualify, you must have any form of business, side hustle, or self-employment income and no employees, including part-time employees who have reached 21 years of age, […]
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, […]
OVERVIEW If your company provides a 401k plan, there’s a high chance that they also offer employer matching. A study by the Plan Sponsor Council of America showed that 98% of companies that offer a 401k also provide employer matching for their employees. In employer matched 401k plans, employers will contribute to an employee’s 401k, up […]
The top companies in the world offer generous 401k employer matches in order to attract top talent and to encourage their employees to participate in their 401k plan. What is 401k employer matching? An employer match is an additional contribution made by an employer towards an employee’s 401k plan. Many employees consider it as free […]
A solo 401k plan is a 401k designed for individuals. Rather than your employer sponsoring the plan for you, if you want access to the tax benefits a solo 401k gives you, you’re responsible for setting up a plan for yourself. There are many solo 401k plan providers out there, each one offering different features […]
If you’re required to make estimated tax payments to the IRS, taxes are due four times per year. If you missed a quarterly tax payment, the IRS will charge you with an underpayment penalty for not paying enough or not paying on time (even if you’re owed a tax refund). The penalty charged is not […]
What are quarterly tax payments? The United States’ tax system operates on a pay-as-you-go basis, meaning you must pay taxes as you earn or receive income during the year. There are two ways to pay as you go: Because most W-2 income earners have their taxes withheld and only have to pay attention to their […]
OVERVIEW What is a 60 day rollover? A 60 day rollover is another name for an indirect rollover. When you’re rolling over funds from one retirement plan to another, you get the option to choose between a direct rollover and an indirect rollover. Because of the 60-day period, an indirect rollover is also known as […]
