Solo/individual/checkbook 401k question

[Mayer M.]

Hey,

Hoping someone can assist.

Last year I setup a individual 401k aka checkbook/solo 401k.

I have real estate projects in South Jersey and Philadelphia, but the 401k was setup under my NJ flipping LLC. My attorney is suggesting that I create a new LLC in a favorable state for both anonymity and liability reasons and have that LLC own the NJ and PA LLCs.

My first question is do you agree with the above? And my second question is can I have the 401k changed to the new foreign LLC?

Doing this would allow for all profits to flow through the foreign LLC and therefore allow for larger contributions.

Thanks in advance!

Mayer

[Dmitriy Fomichenko]

@Mayer M.

It is my understanding that 401k contributions will reduce your state and federal income tax, but not the SE tax. But I'm not a tax expert, I suggest you discuss your tax strategy with experienced tax professional.