Dec 30

IRA Financial Group Offers Year-End Tax Planning Service For All Self-Directed IRA and Solo 401(k) Plan Clients

2015 year-end tax planning service will help IRA Financial Group Clients keep their self-directed retirement structures in IRS compliance

IRA Financial Group, the leading provider of “checkbook control” self-directed IRA and solo 401(k) plan solutions, is proud to offer all its self-directed retirement clients year-end tax planning service, which includes tax-consulting services. The 2015 year-end tax planning service will help clients keep their self-directed retirement structures in full IRS compliance, including an overview of the IRS prohibited transaction rules. “We are really excited about offering all our self-directed IRA and Solo 401(k) plan clients with 2015 year-end tax planning service to include a number of very exciting features,” stated Adam Bergman, a partner with the IRA Financial Group. “We are committed to helping our clients better understand all he IRS rules in connection with their self-directed IRA and Solo 401(k) plan, including the IRS prohibited transaction and the unrelated business taxable income rules,” stated Mr. Bergman.

IRA Financial Group Offers Year-End Tax Planning Service For All Self-Directed IRA and Solo 401(k) Plan ClientsThe year-end tax planning service will provide IRA Financial Group clients with important information on the following topics: (1) maximizing 401(k) and IRA contributions, (2) taking advantage of the Roth IRA and Roth 401(k) features, (3) ant-fraud prevention services, and making IRS approved investments with retirement funds. “We are hopeful that our twelve thousand plus clients take advantage of the expanded year-end tax planning services we are offering all our self-directed IRA LLC and solo 401(k) clients,” stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading “checkbook control” Self Directed IRA Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

IRA Financial Group proudly announces the latest book titled “The Checkbook IRA” written by tax partner Adam Bergman, which is now available on Amazon. This is the second book in a four-part series on self-directed retirement plans. The first book “Going Solo” is also available on Amazon.

To learn more about the IRA Financial Group, please visit our website or call 800-472-0646.

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Dec 29

IRA Financial Group To Offer One-Day Set-Up For New Solo 401(k) Plan Clients in Light of December 31, 2015 Deadline

Self-directed solo 401(k) Plan solution can be set-up in one day and would offer self-directed investment features and can be opened at any local bank

IRA Financial Group, the leading provider of IRS compliant self-directed solo 401(k) plans, announces the one-day solo 401(k) plan set-up in light of the looming December 31, 2015 deadline for establishing a solo 401(k) Plan for the 2015 taxable year. The newly featured one-day self-employed 401(k) Plan set-up program will allow plan participants to rollover former employer 401(k) Plan, 403(b), 457(b), or IRA funds to a self-directed and open architecture solo 401(k) plan tax-free and penalty-free. The one-day solo 401(k) plan solution is designed specifically for individuals who are looking to gain access to their retirement funds to make traditional as well as non-traditional investments, such as real estate with no annual fees for the 2015 taxable year. “Because of strong demand from potential solo 401(k) plan clients to establish plans before December 31, 2015, we are offering a one-day solo 401(k) plan set-up for no additional fees.“ stated Susan Glass, a retirement tax specialist with the IRA Financial Group. “The self-directed self-employed 401(k) plan is a great retirement and investment vehicle for the self-employed looking to get more control of their retirement funds and make high tax deductible or after-tax contributions,” stated Ms. Glass.

IRA Financial Group’s self-directed solo 401k Plan, also known as a solo 401(k) plan or individual 401(k) plan, is a cost effective 401(k) plan that was designed specifically for the self-employed or the small business owner with no employees. IRA Financial Group’s open architecture self-employed 401(k) plan is a retirement plan designed to maximize contributions and be less complex and less expensive to maintain than a conventional 401(k) Plan. With IRA Financial Group’s individual 401(k) Plan, in 2015, a plan participant can make high contributions – up to $57,500 – borrow $50,000 or 50% of his or her account value, and make real estate and other investments tax-free and without custodian consent.

With IRA Financial Group’s one-day set-up individual 401(k) Plan solution, as trustee of the plan, the plan participant will have “checkbook control” over the plan funds and have the ability to make traditional (stocks, mutual funds, etc.) as well as non-traditional investments (real estate, precious metals, tax liens, private businesses, etc.) without tax. Furthermore, IRA Financial Group’s self-directed 401K Plan account can be opened at any local bank or credit union.

IRA Financial Group proudly announces the latest book titled “The Checkbook IRA” written by tax partner Adam Bergman, which is now available on Amazon. This is the second book in a four-part series on self-directed retirement plans. The first book “Going Solo” is also available on Amazon.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading solo 401k plan provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please call 800-472-0646.

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Dec 28

IRA Financial Group To Offer One-Day Set-Up For New Solo 401(k) Plan Clients in Light of December 31, 2015 Deadline

Self-directed solo 401(k) Plan solution can be set-up in one day and would offer self-directed investment features and can be opened at any local bank

IRA Financial Group, the leading provider of IRS compliant self-directed solo 401(k) plans, announces the one-day solo 401(k) plan set-up in light of the looming December 31, 2015 deadline for establishing a solo 401(k) Plan for the 2015 taxable year. The newly featured one-day self-employed 401(k) Plan set-up program will allow plan participants to rollover former employer 401(k) Plan, 403(b), 457(b), or IRA funds to a self-directed and open architecture solo 401(k) plan tax-free and penalty-free. The one-day solo 401(k) plan solution is designed specifically for individuals who are looking to gain access to their retirement funds to make traditional as well as non-traditional investments, such as real estate with no annual fees for the 2015 taxable year. “Because of strong demand from potential solo 401(k) plan clients to establish plans before December 31, 2015, we are offering a one-day solo 401(k) plan set-up for no additional fees.“ stated Susan Glass, a retirement tax specialist with the IRA Financial Group. “The self-directed self-employed 401(k) plan is a great retirement and investment vehicle for the self-employed looking to get more control of their retirement funds and make high tax deductible or after-tax contributions,” stated Ms. Glass.

 IRA Financial Group To Offer One-Day Set-Up For New Solo 401(k) Plan Clients in Light of December 31, 2015 DeadlineIRA Financial Group’s self-directed solo 401k Plan, also known as a solo 401(k) plan or individual 401(k) plan, is a cost effective 401(k) plan that was designed specifically for the self-employed or the small business owner with no employees. IRA Financial Group’s open architecture self-employed 401(k) plan is a retirement plan designed to maximize contributions and be less complex and less expensive to maintain than a conventional 401(k) Plan. With IRA Financial Group’s individual 401(k) Plan, in 2015, a plan participant can make high contributions – up to $57,500 – borrow $50,000 or 50% of his or her account value, and make real estate and other investments tax-free and without custodian consent.

With IRA Financial Group’s one-day set-up individual 401(k) Plan solution, as trustee of the plan, the plan participant will have “checkbook control” over the plan funds and have the ability to make traditional (stocks, mutual funds, etc.) as well as non-traditional investments (real estate, precious metals, tax liens, private businesses, etc.) without tax. Furthermore, IRA Financial Group’s self-directed 401K Plan account can be opened at any local bank or credit union.

IRA Financial Group proudly announces the latest book titled “The Checkbook IRA” written by tax partner Adam Bergman, which is now available on Amazon. This is the second book in a four-part series on self-directed retirement plans. The first book “Going Solo” is also available on Amazon.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading solo 401k plan provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please call 800-472-0646.

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Dec 22

New Podcast – Understanding the 401(k) After-Tax Contribution Conversion Rules

IRA Financial Group’s Adam Bergman discusses how to understand the after-tax 401(k) contribution conversion rules.

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Dec 21

2016 Solo 401(k) Contribution Rules and Limits

Although time is running out on 2015 Solo 401(k) contributions, soon you can contribute for 2016.  Here is everything you need to know.

Solo 401(K) Annual Contribution Limits To Stay The Same In 2016

Under the 2016 Solo 401(k) contribution rules, a plan participant under the age of 50 can make a maximum annual employee deferral contribution in the amount of $18,000. That amount can be made in pre-tax, after-tax or Roth. On the profit sharing side, the business can make a 25% (20% in the case of a sole proprietorship or single member LLC) annual profit sharing contribution up to a combined maximum, including the employee deferral, of $53,000, the same as in 2015.

For plan participants over the age of 50, an individual can make a maximum annual employee deferral contribution in the amount of $24,000. That amount can be made in pre-tax, after tax, or Roth. On the profit sharing side, the business can make a 25% (20% in the case of a sole proprietorship or single member LLC) annual profit sharing contribution up to a combined maximum, including the employee deferral, of $59,000, the same as in 2015.

One of the main benefits of a Solo 401(k) Plan is the opportunity to make higher annual contributions in pre-tax, after-tax or Roth.

IRA Financial Group’s Solo 401K plan is unique and so popular because it is designed explicitly for small, owner-only business. In addition, to the high annual contribution limitations. There are many features of the IRA Financial Group’s Solo 401K plan that make it so appealing for small business owners.

Tax and Penalty Free Loan

Unlike most Solo 401K Plans offered by the traditional financial institutions such as Fidelity, IRA Financial Group’s Solo 401K Plan allows plan participants to borrow up to $50,000 or 50% of their account value (whichever is less) for any purpose, including paying credit card bills, mortgage payments, or anything else. The loan has to be paid back over a five-year period at least quarterly at a minimum prime interest rate (you have the option of selecting a higher interest rate).

Checkbook Control & No Transaction Fees

The most attractive feature of the IRA Financial Group Solo It's Time To Let 401(k) Holders Invest Like the Pros 401k Plan is that it offers the plan participant checkbook control over his or her retirement funds. In the case of a conventional Solo 401K Plan offered by most financial institutions, the plan participant is relegated to making traditional investments such as stocks and or mutual funds. In addition, the Solo 401KPlan account is required to be opened at the financial institution. With IRA Financial Group’s Solo 401K Plan, the plan account can be opened at any local bank, including Chase, Wells Fargo, and even Fidelity. In addition, with IRA Financial Group’s Solo 401K Plan, the plan participant can make almost any traditional as well as non-traditional investments, such as real estate, precious metals, tax liens, and much more. With IRA Financial Group’s Solo 401K Plan, the Plan participant has the freedom to make the investments he or she wants while at the same time opening the 401K account at any local bank. As trustee of the Solo 401K Plan, the Plan Participant (you) can serve as the trustee providing you checkbook control over your retirement funds. With IRA Financial Group’s Solo 401K Plan, making a Solo 401K Plan investment is as simple as writing a check.

Invest in Real Estate & Much More Tax-Free

With IRA Financial Group’s Self-Directed Solo 401(k) plan, you will be able to invest in almost any type of investment opportunity that you discover, including: real estate, tax liens, precious metals, private notes, hard money loans, private business, etc.; your only limit is your imagination. The income and gains from these investments will flow back into your IRA tax-free.

Roth Contributions & Conversion

Unlike a conventional Solo 401K Plan offered by most financial institutions, IRA Financial Group’s Solo 401K Plan contains a built in Roth sub-account which can be contributed to without any income restrictions. In addition, the IRA Financial Group’s Solo 401K Plan allows for the conversion of a traditional 401(k) or 403(b) account to a Roth subaccount. However, the Solo 401K Plan participant must pay income tax on the amount converted.

Easy Administration

Like all Solo 401K Plans, IRA Financial Group’s Solo 401K Plan is easy to operate. There is generally no annual filing requirement unless your solo 401K Plan exceeds $250,000 in assets, in which case you will need to file a short information return with the IRS (Form 5500-EZ). However, unlike a financial institution, the tax professionals at the IRA Financial Group will assist you in completing this form is require.

To learn more about the advantages of the Solo 401K Plan with Checkbook Control please contact a 401K Expert at 800-472-0646.

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Dec 17

Solo 401(k) Contribution Deadline Nears for Most People

The deadline for making Solo 401K Plan contributions is typically dependent on the type of entity that has adopted the Solo 401K Plan as well as the type of contribution – employee deferral vs. profit sharing contribution.

Sole Proprietorship

Employee Deferral

In the case of a sole proprietorship, a business owner under the age of 50 may make employee deferral contributions up to $18,000 for 2015 (an employee over the age of 50 may make a $6,000 annual catch-up contribution for an annual deferral contribution imitation of $24,000). An Employee must elect to make the employee deferral contribution by December 31 of the year. However, the employer deferral contribution can be made up until the tax-filing deadline.

The employee deferral contribution can be made using pre-tax and/or after-tax (Roth) funds.

Profit Sharing Contribution

The sole proprietorship business may make annual profit sharing contributions for the business owner and spouse annually. Internal Revenue Code Section 401(a)(3) states that the amount of employer contributions is limited to 25 percent of the entity’s income subject to self-employment tax. Schedule C sole-proprietors must do an added calculation starting with earned income to determine their maximum contribution, which, in effect, brings the maximum 25% of compensation limit down to 20% of earned income. A step-by-step worksheet for this calculation can be found in IRS Publication 560. In general, compensation is your net earnings from self-employment. This definition takes into account both of the following items: (i) the deduction for one-half of your self-employment tax, and (ii) the deduction for contributions on your behalf to the plan.

The profit sharing contribution must be made by the business’s tax-filing deadline.

Single Member LLC

Employee Deferral

In the case of a single member LLC, the single member LLC owner under the age of age 50 may make employee deferral contributions up to $18,000 for 2015 (an employee over the age of 50 may make a $6,000 annual catch-up contribution for an annual deferral contribution limitation of $24,000). The single member LLC owner must elect to make the employee deferral contribution by December 31 of the year. However, the employer deferral contribution can be made up until the tax-filing deadline.

The employee deferral contribution can be made using pre-tax and/or after-tax (Roth) funds.

Profit Sharing Contribution

The single Member LLC business may make annual profit sharing contributions for the business owner and spouse annually. Internal Revenue Code Section 401(a)(3) states that the amount of employer contributions is limited to 25 percent of the entity’s income subject to self- employment tax. Schedule C single member LLC owners must do an added calculation starting with earned income to determine their maximum contribution, which, in effect, brings the maximum 25% of compensation limit down to 20% of earned income. A step-by-step worksheet for this calculation can be found in IRS Publication 560. In general, compensation is your net earnings from self-employment. This definition takes into account both of the following items: (i) the deduction for one-half of your self-employment tax, and (ii) the deduction for contributions on your behalf to the plan.

Profit-sharing contributions must be funded by the business’s tax-filing deadline.

Multiple-Member LLC

Employee Deferral

In the case of a multiple member LLC, the multiple-member LLC owners under the age of age 50 may make employee deferral contributions up to $18,000 for 2015 (an employee over the age of 50 may make a $6,000 annual catch-up contribution for an annual deferral contribution limitation of $24,000). The multiple-member LLC owners must elect to make the employee deferral contribution by December 31 of the year. However, the employee deferral contribution can be made up until the tax-filing deadline.

The employee deferral contribution can be made using pre-tax and/or after-tax (Roth) funds.

Profit Sharing Contribution

The multiple-member LLC business may make annual profit sharing contributions for the business owners annually. Internal Revenue Code Section 401(a)(3) states that the amount of employer profit sharing contributions is limited to 25 percent of the entity’s income subject to self-employment tax. Profit-sharing contributions must be funded by the business’s tax-filing deadline.

C Corporation & S Corporation

Employee Deferral

An employee of a corporation will receive a W-2. When it comes to making employee deferral contributions, the employee must make the deferral contribution during the year. The timing of the deferral contribution will typically depend on the business. In the case of a corporation that uses a payroll company, the employee deferral will typically be deducted from the employee’s paycheck. If the company does not use a payroll system, the employee can elect to make deferral contributions at anytime during the year. Once the election is made the Department of Labor safe harbor is that the funds are deposited into the Solo 401(k) Plan account within 7 days. The employee making the employee contribution should make sure that he or she has earned enough compensation during the pay period to cover the employee contribution. For example, if the employee wishes to make a employee deferral contribution of $18,000 on December 30th, the employee will need to be sure that he or she has earned sufficient compensation during the pay period to cover the deferral contribution.

The employee deferral contribution can be made using pre-tax and/or after-tax (Roth) funds.

Profit Sharing Contributions

The corporation may make profit sharing contributions for corporation’s owner(s)/employee(s) annually. Internal Revenue Code Section 401(a)(3) states that the amount of employer profit sharing contributions is limited to 25 percent of the entity’s income subject to self-employment tax.

Profit-sharing contributions must be funded by the business’s tax-filing deadline.

Please contact one of our Solo 401k Experts at 800-472-0646 for more information.

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Dec 15

IRA Financial Group Private Business Funding Services

The IRA Financial Group was founded by a group of top law firm tax and ERISA professionals who have worked at some of the largest law firms in the country, including White & Case LLP and Dewey & LeBoeuf LLP.

In developing our Business Acquisition & Compliance Solution Structure (“BACSS”), also known as ROBS, our in-house retirement tax professionals have carefully examined and researched IRS and Department of Labor guidance to design a structure that is fully compliant with IRS and ERISA rules. Each client of the IRA Financial Group is assigned an individual retirement tax professional who will help customize a structure that satisfies his or her financial and retirement needs while ensuring the structure is developed in full compliance with IRS and ERISA rules and requirements. Our services include:

  • Establishment of “C” Corporation including Filing Fees;
  • Filing LLC Articles of Incorporation with the state;
  • Application for Corporation EIN;
  • Drafting all required initial corporate resolutions and minutes;
  • Drafting of customized Stock Purchase Agreement;
  • Drafting of customized Employee Stock Purchase Agreement;
  • Free consultation with in-house retirement tax professional on the BACSS structure;
  • Adoption of 401(k) Plan;
  • Basic Plan Document;
  • EGTRRA Amendment;
  • Summary Plan Description;
  • Trust Agreement;
  • Appointment of Trustee;
  • Beneficiary Designation;
  • Application for Plan trust EIN;
  • Assistance in the establishment of business and 401(k) Plan bank accounts;
  • Assistance with the transfer of funds to your new 401(k) Plan bank account;
  • Assistance in coordinating the completion of all IRS required information returns
  • Assistance in coordinating the acquisition of an independent business appraisal;
  • Free consultation with in-house retirement tax professional on the BACSS structure;
  • Tax support on the BACSS and the 401(K) Plan; and
  • Annual compliance review

We have developed a process that ensures speed and compliance, by using standardized procedures that work via phone, e-mail, fax, and mail. Your funds will typically be ready for investment into your new or existing business within 14-21 days.

Please contact one of our Retirement Experts at 800-472-0646 for more information.

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Dec 14

IRA Financial Group Introduces Advanced Solo 401(k) Annual Contribution Calculator Tool for 2015

Solo 401(k) Plan Contribution calculator will allow individuals to calculate their maximum solo 401(k) Plan annual capital contributions for 2015

IRA Financial Group, the leading provider of self-directed Solo 401(k) Plans, introduces new look online Solo 401(k) annual contribution calculator for 2015. The newly revamped online Solo 401(k) contribution calculator is a valuable tool that will allow an individual to calculate the maximum annual contribution to a solo 401(k) Plan, including employee deferrals and employer profit sharing contributions for 2015. The improved 401k online contribution calculator tool will allow a Solo 401(k) Plan participant the ability to calculate their maximum annual Solo 401(k) contribution based on ones age as well as the type of entity they have (i.e. sole proprietorship, LLC, partnership, or corporation) for the 2015 taxable year. “We are excited to introduce the newly designed Solo 401(k) Plan contribution calculator for individuals looking to determine their maximum 401(k) contribution amount for 2015,“ stated, Susan Glass, a 401(k) retirement specialist with the IRA Financial Group.

The annual Solo 401k contribution consists of two parts, an employee salary deferral contribution and an employer profit sharing contribution. In 2015 the total Solo 401(k) contribution limit is $53,000 or $59,000 if age 50 or older. The total allowable contribution limits are combined to get the maximum Solo 401k contribution limit. The Solo 401(k) contribution limit for 2016 will remain the same as 2015.

IRA Financial Group Introduces Advanced Solo 401(k) Annual Contribution Calculator Tool for 2015Up to $18,000 per year can be contributed by the participant through employee elective deferrals. An additional $6,000 can be contributed for persons over age 50. Through the role of employer, an additional contribution can be made to the plan in an amount up to 25% of the participant’s self- employment compensation (20% if one a Sole Proprietor or a Schedule C Tax Payer).

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading provider of self-directed Solo 401(k) plan. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please call 800-472-0646.

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Dec 11

How You Can Fund a Solo 401k Plan

An individual who adopts a Solo 401(k) Plan may generally fund the Solo 401(k) Plan using two methods – the rollover process or by direct contribution.

Most Solo 401(k) Plan documents will allow for the rollover of IRA or other pre-tax employer retirement funds, such as a 401(k), 403(b), or 457(b). The IRA holder or plan participant may generally fund the new Solo 401(k) Plan by either a direct or indirect rollover. It is important to remember that Roth IRA funds may not be rolled into a Solo 401(k) Plan.

Direct Rollover of Retirement Funds to a Solo 401(k) Plan

When an IRA holder or plan participant directly rolls over eligible IRA or employer plan retirement fund to a Solo 401(k) Plan, the IRA holder or plan participant must generally initiate the rollover process with the financial institution that is holding the retirement funds. Upon receiving a direct rollover request form, which is usually submitted in writing, the current retirement account custodian would issue a check to the new Solo 401(k) Plan participant in the name of the receiving plan for the benefit of the individual. The 60-day rollover rule would not apply. Also, there would be no withholding because the rollover is not considered a taxable distribution.

Reporting a Direct Rollover to a Solo 401(k) Plan

A direct rollover of retirement assets to a Solo 401(k) Plan id reported on IRS Form 1099-R using distribution Code G, in box 7. The transferring financial institution would be the party required to file the IRS Form 1099-R with the IRS. The receiving financial institution is not required to report the rollover transaction.

How Does the IRS know The Retirement Funds Were Rolled into a Solo 401(k) Plan?

In the case of a transfer of retirement funds to an IRA, the IRA custodian receiving the transfer or rollover of IRA funds is required to report the receipt of IRA funds on an IRS Form 5498, which provides the IRS with the value of the IRA holder’s IRA account. The IRS would then be able to match the 1099-R with the Form 5498 offering the IRS a road map of the movement of funds.

Ways to Fund Your Solo 401k PlanHowever, when receiving a rollover of retirement funds, the receiving financial institution, which is the custodian of the newly established Solo 401(k) Plan is not required to report the rollover. So how does the IRS know that the funds were in-fact rolled over to a Solo 401(k) Plan. Firstly, the retirement account custodian transferring or rolling over the retirement funds to the new Solo 401(k) Plan, will file an IRS Form 1099-R and include Code G in Box 7, which will notify the IRS that the funds were rolled into another retirement account. In addition, if the Solo 401(k) Plan participant has plan assets in excess of $250,000, the Solo 401(k) Plan participant is required to file an IRS Form 5500-EZ. The IRS Form 5500-EZ will provide the IRS with the annual Solo 401(k) plan account value which will allow the IRS to match-up the funds that were rolled over and identified on the IRS Form 1099-R.

In the case of a Solo 401(k) Plan participant that is not required to file an IRS Form 5500-EZ because the plan has less than $250,000 in plan assets, how does the IRS know that the plans were actually rolled over into the Solo 401(k) Plan. In this case, the plan participant would have to rely on the IRS Form 1099-R disclosing to the IRS by using Code G in Box 7, that the funds were rolled over to a retirement account. The Solo 401(k) Plan participant does have the option of filing an IRS Form 5500-EZ even if the plan assets are less than $250,000. By filing the IRS Form 5500-EZ, the plan participant would be able to disclose the value of the plan’s assets, which would correspond to the rollover amount reflected on the IRS Form 1099-R. In general, relying on the IRS Form 1099-R as the sole method of proving to the IRS that the funds were directly rolled over to a Solo 401(k) Plan is sufficient, however, if an individuals wants additional support to show the funds were directly rolled over to a retirement account, filing the IRS Form 5500-EZ could be helpful.

Indirect of Retirement Funds to a Solo 401(k) Plan

An IRA holder or retirement plan participant may generally initiate an indirect rollover by requesting a distribution. An indirect rollover means that the retirement funds are distributed first to the IRA holder or plan participant before they are ultimately rolled over to an IRA or qualified retirement plan. The indirect rollover process must be completed within 60 days. The indirect rollover is not a common method of funding a new retirement account and it can only be done once every twelve (12) months.

The check for an indirect rollover is issued in the name of the IRA holder of plan participant. The individual would then have 60 days to deposit the amount in an eligible retirement plan, such as a Solo 401(k) Plan to avoid taxation and penalties.

Reporting a Indirect Rollover to a Solo 401(k) Plan

Like an IRA distribution, a distribution that is intended to be rolled over to a retirement plan is reported on IRS Form 1099-R, generally using code 1 or 7, depending on the IRA holder’s age. The IRA holder would then have 60 days to roll the funds over to the Solo 401(k) Plan. The indirect rollover process is not recommended when it comes to rolling funds to a Solo 401(k) Plan since it could lead to IRS inquiry about the whereabouts of the rolled over retirement funds. Unlike an IRA which requires the receiving IRA custodian to report the value of the received funds on an IRS Form 5498, in the case of a Solo 401(k) Plan no such reporting is required. A Solo 401(k) Plan custodian is not required to report the value or activities of a Solo 401(k) Plan. The Plan participant would only be required to report the value of the Solo 401(k) Plan if the plan assets were in excess of $250,000.

When retirement funds are indirectly rolled over to a Solo 401(k) Plan, a withholding election is generally required, but the IRA holder may elect to waive withholding.

To learn more about the rules of rolling retirement funds to a Solo 401(k) Plan, please contact a retirement tax expert at 800-472-0646.

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Dec 10

IRA Financial Group Proud To Offer Self-Directed Solo 401(K) Plan with No Transaction, Account Value or Termination Fees

Checkbook control self-directed solo 401(k) plan is an open architecture trustee directed retirement plan for the self-employed that is cost-effective

IRA Financial Group, the leading provider of Self-Directed Solo 401(k) plans, is proud to offer one of the nation’s only self-directed Solo 401(k) retirement plans that does not include any transaction fees, account value fees, and termination fees. With IRA Financial Group’s Self-Directed Solo 401(k) plan, one will have checkbook control over the plan assets and will be able to make traditional as well as alternative asset investments, such as areal estate from a local bank. “We are delighted to offer one of the country’s only Self-Directed Solo 401(k) plan that allows for the purchase of real estate, make Roth and after-tax contributions, and includes a loan feature with no transaction or account value fees.” Stated Adam Bergman, a partner with the IRA Financial Group.

IRA Financial Group Proud To Offer Self-Directed Solo 401(K) Plan with No Transaction, Account Value or Termination FeesThe Solo 401(k) Plan, also known as the Individual 401(k) Plan or Self-Directed 401(k), is an IRS approved qualified retirement plan that was created specifically for the self-employed. The IRS created the Solo 401(k) Plan to be a cost effective retirement solution for the self-employed or a business owner with no employees. A Solo 401(k) is perfect for sole proprietors, small businesses and independent contractors such as consultants. A Solo 401(k) plan offers the same advantages as a self-directed IRA, but without having to hire a special custodian or create an LLC. A Solo 401(k) plan can be adopted by any business type, including a sole proprietorship, Corporation, LLC, or partnership. With IRA Financial Group’s IRS approved Solo 401(k) plan, as trustee of the Solo 401(k) plan, the plan participant has the ability to make investment decisions on behalf of the plan without seeking the consent of the custodian. Accordingly, the trustee of the Solo 401(k) plan has “checkbook control” over his or her retirement funds to make real estate and other investments tax-free. “The beauty of IRA Financial Group’s IRS approved self-directed Solo 401(k) plan is that the is a trustee directed checkbook control plan that can be opened at most local banks and major financial institutions allowing one to make traditional or alternative asset investments, make high contributions in pre-tax, after-tax, or Roth, benefit from the loan feature, while not having to incur any account value, transaction or termination Solo 401k fees,” stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the leading provider of Solo 401(k) Plan solutions. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate and private business investments without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

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