Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes
Has anyone worked with these guys?
I want to roll over a 401k etc., but have not been able to find much on them in the way of reviews. They are BBB accredited, but with only one review. Other than this, info is pretty thin. They look like they have a good product, I just want to know they are legit.
Thanks.
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
9y
Hi Tony,
Justin, the owner of the company is a frequent contributor here on the forum so to answer your question yes, this is a legitimate company. You can view his references on his profile:
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
9y
Hi Tony,
Justin, the owner of the company is a frequent contributor here on the forum so to answer your question yes, this is a legitimate company. You can view his references on his profile:
Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes
9y
Dmitriy Fomichenko
Yes, I know Justin is a frequent contributor on BP and I have reviewed his profile.
I was just looking for something from those that have used his services.
Thanks.
I am a client of theirs and found Justin helpful, responsive, and have nothing but good things to say about them. You can PM me if you want to talk more specifically. I have referred others to Justin and will continue to do so.
The setup was straightforward.
When I have asked him for specific input on deals I am looking into or questions about ideas I am considering, he is quick to provide me the information, steer me away from violations on my self-directed account, and help me with strategy questions.
Las Vegas, NV · Member since 2016 · 1 post · 1 vote
9y
I found Justin on BiggerPockets about a month ago after a number of google searches for 401k options (I'm not really a BiggerPockets user). I emailed the EQRP people asking for details on the difference of what they offer (since they charge more) and they never responded. I saw a post from Justin and emailed him and he was very responsive and helpful. After that exchange, I decided to have him set up my Solo 401k and the set up was quick and smooth.
Investor · Marietta, GA · Member since 2014 · 226 posts · 97 votes
9y
@Tony Gunter I use Justin's company and have nothing but good things to say. I have had many many questions throughout the process of setting up my Solo 401k as well as after. I then had problems setting up the bank account and he was helpful in that regard too. Justin has been a pleasure to work with. Actually using my 401k on a flip right now.
Specialist · Denver, CO · Member since 2016 · 45 posts · 59 votes
9y
@Tony Gunter I work with Justin and his clients. (I open the 401K checking accounts). He's been doing this for a while (mid 2000's). I interface with his clients after they are done opening their Solo 401K and they are very well prepared with the ongoing forms they will need to transact business with their 401K and conduct the rollover from their previous IRA/401K. The Gold Standard in this business is follow up and follow through and Justin is 24 karat.
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
9y
Hey @Kalimah Jenkins, be sure to have knowledgeable CPA on your side. Income from flipping is likely to be subject to Unrelated Business Income Tax that tax exempt entity such as 401k would be responsible paying. You have to determine what the income is and properly report it, that is where CPA experienced in this are will be very handy.
Investor · Colorado Springs, CO · Member since 2016 · 1 post · 1 vote
9y
Hi Tony, I opened an account with Justin last year and his service has been more than complete, corteous, and the most inexpensive vendor I could find. As a plus he is "local" for me (about 60 miles) but I never needed to visit in person. He has answered questions both ignorant and complex and helped me find a bank willing to hold the trust account. It's all good!
Houston, TX · Member since 2013 · 3 posts · 2 votes
9y
Hi,
I have been meaning to do this for a while and finally decided to use solo401k. Just went through the process and it was fairly simple. Justin was great and he answered all my questions. Kicking myself for taking this long but finally its done.
Wholesaler · Odenton, MD · Member since 2016 · 27 posts · 27 votes
9y
As a current client of Justin, I too can attest that the services he has provided are immaculate. After contacting multiple Solo 401k companies, i decided to go with Discount Solo 401k because their services were up to par and prices were reasonable. Other companies were charging twice the price for the same service with no additional benefit. PM me if you have any further question.
Moorhead, MN · Member since 2017 · 2 posts · 1 vote
9y
Yes . worked with Justin on getting a solo 401k going and it was seamless. Got all the paperwork done in no time at all. He was very helpful and as part of you using them they will work with you and the bank that you choose with setting up the Trust account. Also when tax time comes if your accountant or cap have questions they are there to help with that as well. Felt they have a good price on all they offer compared to other company's. I strongly recommend using Kreighton Reed at Solera Bank as the bank with where the trust is held. They know exactly what this plan is all about and will get it set up without any problems.
Investor · Norristown, PA · Member since 2016 · 4 posts · 3 votes
9y
I just recently used Justin from Discount Solo 401K to set up my Solo 401K. Justin is really easy to work with and will walk you through the process step by step. We set up my Solo in January and have already leveraged the borrowing aspect of the plan and am in mid stage of Flipping a property with the funds. Here is what I really appreciated about Justin. He picks up the phone every time you call him. I highly recommend him.
I want to roll over a 401k etc., but have not been able to find much on them in the way of reviews. They are BBB accredited, but with only one review. Other than this, info is pretty thin. They look like they have a good product, I just want to know they are legit.
Thanks.
I also also use Justin. He's been helpful the whole way through. I started my process too weeks before Christmas and it was done before Christmas. I was surprised since most places roll up the carpet that time of year.
Seattle, WA · Member since 2015 · 2 posts · 2 votes
9y
Hi Tony,
I worked with Justin early this year. The entire process was efficient and professional and the most affordable of similar services. He was also available and fast to answer questions after the transaction. 5 stars.
Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
9y
Going to add to the chorus of positive comments about Justin and Discount Solo 401K.
I looked into and talked to a few providers when I was looking into setting up a solo 401K last year. I decided to go with Justin because:
1. He was very knowledgeable and patient in explaining everything and answering my questions. Customer service is paramount to me, and I want clear answers especially when I am getting into something new. Justin explained everything very well- the set-up process, the legal side of the solo 401K, how his firm figures in the long-term picture (filings, etc) in a way that made me very comfortable going with him.
2. Justin was super responsive from the beginning, and continues to be. I will e-mail him a question and usually receive an answer (clear, concise and courteous- the golden combination!) within a few minutes or a couple of hours. This is priceless when you have to make a quick decision about something.
3. His price point (both for the initial set-up and the annual account maintenance fees) was lower than the other firms I liked looked into. Over the life of my account, this will amount to thousands of dollars.
4. He is very pleasant tip talk to and deal with- he has a sense of humor!
Hey @Kalimah Jenkins, be sure to have knowledgeable CPA on your side. Income from flipping is likely to be subject to Unrelated Business Income Tax that tax exempt entity such as 401k would be responsible paying. You have to determine what the income is and properly report it, that is where CPA experienced in this are will be very handy.
Is that accurate? From my research, the solo 401K is exempt from UBIT (unlike the Roth IRA) because the money is pre-tax, and it will be taxed at distribution.
Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
9y
@Account Closed
The Solo 401k is exempt from UDFI (unrelated debt financed income) tax, a type of UBIT that does apply to IRAs, but not the 401k on debt leveraged real estate. UBIT (unrelated business income tax) does apply to all retirement accounts and other tax-exempt organizations if invested into an active trade or business. Flipping, if done regularly and consistently enough, could constitute an active trade or business and doing so within the 401k could subject the returns to UBIT.
You are correct that passive investments generate tax-deferred gains within the account until the funds are distributed.
CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg · New York City, NY · Member since 2017 · 581 posts · 563 votes
9y
@Account Closed One point that bears emphasizing. The exemption from UDFI for 401k Plans is not applicable to all investments. Section 514(c)(9) of the Tax Code is titled "Real property acquired by a qualified organization" and applies to real estate, only.
Thanks for the clarification. I should have mentioned that what I read was that 3 or fewer flips inside a solo 401K would not incur taxes... Does that number seem accurate?
Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
9y
@Account Closed
What you read is likely a specific interpretation of the line between regularly conducted business and a one-off or seldom made investment. I've seen different numbers used as the maximum number of flips, often cited within a specific time period. The IRS does not have any specific rule (as far as I've seen) on the line between investment and business, unfortunately. What I've seen the most in this regard are examples of what is unlikely to trigger UBIT ("one flip in a year," or "one or two flips"). I don't think there is an exact point where this would cross over into triggering UBIT in all situations, unfortunately. Like so many other issues with taxes and the IRS, it's likely a number of factors that would be considered on a case-by-case basis.
CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg · New York City, NY · Member since 2017 · 581 posts · 563 votes
9y
@Account Closed. 2 factors that impact whether UBIT applies to RE in a retirement account are (1) "regularly carried on" - IRC 512(a)(1) and (2) whether it was a sale of "property held primarily for sale to customers in the ordinary course of the trade or business" - IRC 512(b)(5). What precisely defines those criteria is based on individual facts and circumstances, as indicated by the courts and IRS.
Investor · Canton, MI · Member since 2016 · 4 posts · 0 votes
9y
Justin is wonderful to work with! Very knowledgeable, very available (would almost always pick up the phone no matter the hour), very helpful (answered questions months after I did business with him, and best of all, just a real pleasure to work with. I talked to literally over a dozen different entities before deciding to go with him, you can't go wrong with Justin, thanks!
Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
9y
Thanks for the additional info, @Justin Windham and @Bernard Reisz. I don't flip inside my solo 401K, but it's good info to have in case I do decide to do it!