Need CPA or Enrolled Agent

[Katie Nguyen]

Hello to all tax pros,

I am new to BP and are sincerely looking to connect with BP's tax pros for tax guidance and tax preparation for 2025.  I am thinking of taking an early withdraw of 100k from  my former employer's 401k, loaning is not an option for me.  Can you suggest?

1. What and if there are legal strategies ideals for Offsetting this 100k income with passive rental income? 

2. Can a SDIRAs or Solo 401k Trust account legally allow a direct funding for investment in a personal promissory note with relatives?

3. How could ones screw up, what is the violation penalty for me?

Thank you everyone for your expertise contribution to the BP community.  Your care to response with complete, correct, truth is much appreciated.

Respectfully,

Katie Nguyen

[Brett Synicky]

@Katie Nguyen 1.  Don't take an early withdrawal it's not worth it. Save the money the old fashioned way or don't do it.  
2. You and your lineal descents are disqualified parties. You, your spouse, your children and their spouses, your parents and grandparents. Keep it third party from there and you're good.

3. A prohibited transaction in an IRA usually disqualifies the entire plan. Don't risk it. For a Solo 401k, you'll have to pay a 15% excise tax for the amount involved and "reverse" the transaction or a 100% tax can be imposed.