All Forum Posts by: Brett Synicky

 If you're incorporated (s-corp) on the employe side you can contribute 25% of what you paid yourself for the year.   Sole prop/single member llc is 20% of the net profit for the year.  This cannot exceed $69k or if over 50, $76,500.  You can contribute up to $23k on the employee side, $30,500 if over 50.  Both of these combined cannot exceed the total of $69k/$76,500, however that entire amount can come from the employer side if you don't contribute on the employee side.   The thing to note is that if you don't need the money to live on you can contribute up to 100% of what you pay yourself/net profit.  Sep works the same on the employer side and does NOT have the employee contribution, among other things.   Hope this helps.  Check with your CPA.  

@Corey G. you’re on the right track.  You can definitely create a pm company like you mentioned.  It isn’t hard to qualify for a solo 401k.  Drive Uber, door dash, sell things on eBay/amazon.   Network marketing.   There are many benefits to solo 401ks over sdira, one of the biggest being the high contribution limits so with my examples you likely won’t make very much but for 2024 you can contribute up to 100% of what you make up to $23,500 and since you don’t need the money to live on this would be a good way to add more money to a Roth solo.  

@Joseph Konney You are a disqualified person. You cannot perform any "work" on behalf of the IRA. You cannot personally benefit from an investment in your IRA. If another agent in your office sold your home, you would benefit since you own the brokerage. This is not a good idea.

Furthermore to address your other comments, you can do white collar work but not blue collar work   Hiring somebody to swing the hammer is ok, you cannot swing the hammer yourself.  

As @Bill B. suggested, go hire a 3rd party brokerage to handle it all. It's not worth risking the invalidation of your IRA account which would cause penalties and taxes.

@Irfan Nasir There are many factors to consider when selecting a company to set up SDIRA. First off, know that a custodian is required for any and all IRA's, however some company's can set up an IRA LLC/Trust to avoid the delays and fees associated with having to go through the custodian for each investment/payment etc. The LLC/Trust is owned by the IRA and gives you as the manager/trustee what's called checkbook control. Do your homework and make the decision you feel is best for you.

@Joshua Talamante Totally get it.  Yes, $250k total plan assets.   If you have checkbook control then you filed the 5500 as the trustee.   If you have a custodial account they should do it.   Happy to discuss further, sent you a DM.  

I assume you have checkbook control, otherwise you would just go to the custodian for questions like this.  That said, specifically what makes you want to pay a 3rd party for plan "compliance"?  Solo 401k generally is not a hard plan to maintain compliance with.  Even if you have checkbook control, your plan document provider should be able to assist you with this.  

You can go through this list and ask.  https://www.biggerpockets.com/member-blogs/2810/50272-list-o...

@Kyle Kline A couple of things I'll add.  1.  You can always "borrow" or withdraw the principle since you already paid taxes on it.  2.  If you qualify for a solo 401k (self employed with no w2 employees other than a spouse) you can take what's called a participant loan.  Up to $50k or 50% (based on available cash) of the total plan assets whichever is less.  Paid back by you at prime plus 1% over 5 years.  Or 15 years if used for the purchase of a primary residence.  

@Tyler Herman you may do this but instead of an LLC it's a trust and with solo 401(k) you may borrow up to $50k or 50% whichever is less. You pay it back at simple interest prime plus 1%. 5 year amo. Or 15 if used for personal residence. You can use that borrowed money for virtually anything.

@J Newman your husband can roll that into a self directed ira and use all the funds for investing and no loan to pay back unless you get financing on the property.  If he has legitimate self employment activity he may be eligible to create a solo 401(k) which is superior in many ways to sdira.