All Forum Posts by: Glenn N.

You have to take a salary out of the LLC. This salary (minus the withholding) can fund the solo 401k. On top of it, the LLC can also add 25% of your salary as profit sharing if the plan permits it. There is a maximum yearly contribution that you can put into it (for employee contributions and profit sharing).

You can also roll over fund from your IRA and maybe other 401, 403, 457 plans that you have if the sponsor authorize it (usually after separation of employment only).

0 Votes

Atlanta, Georgia

I would like to start a solo401k, I had someone draw up a structure. This structure would be A C-Corp holding company with two hard money lending LLCs ( passive income disregarded entity) paying the C-corp fees to run them. Then the C-corp would open a Solo 401K for me and fund it with the fees. One lawyer said it was completely legit, But I want to fund the whole 401k, and to do that it be income off almost 200K and how would I justify these using fees? I had another lawyer say you cannot fund this with passive income from the two LLCs with passive income. I would have had the two LLCs 'c that was lending but I had to retract the s status because you cannot have more than 3 years of passive income in an s-corp . Seems like it would be pushing the envelope and asking for an audit and fines.

1 Vote

Atlanta, Georgia

Quote from @Charles Chang:

I ran into Toby's YouTube videos and they are great! Seems like there is always something that he can offer and plan a well rounded overall strategies depending on your particular situation. What makes me hesitated is just the same as what @DongHui Patel said, they will pawned you off to some junior staff. Witnessed by Yelp reviews.

I personally went through many CPAs. Some knows more than others, but they all comes down to just do file your tax return at the end. Sure! You will eventually run into someone like @Michael S. talked about. A CPA with more experienced, but that's where it really ends. I think the value from Toby is the combinations of that he and his partners who understands tax, law and actively participate the things that he/they said.

What needs to make sense is if the value they provide offset their cost and if they can really deliver the end result as planned. Services like forming LLC, registered agent, state fillings...etc. doesn't spell value to me. Values to me is when they went through your files, point out mistakes, understand your goal, plan a strategy and follow through. Most importantly, do them within the tax year.

@Justin Strait Did you eventually went with Anderson?

0 Votes

Im not sure who you went with but Forge Trust in increasing their fees really higher and doubling some .

0 Votes

I am thinking of doing some hard money lending in Texas are there any restrictions in Texas ,limits , max for usury etc.

thank you

Glenn

0 Votes

Thank you , Brian and Carl . I was suspect when she told me that since I saw no recommendations for them.

0 Votes

I have been working on opening a SIDRA. Thinking about doing it with my ROTH. I have been thinking about using the IRA services with an LLC due to the lower cost ,but I just went by CHASE and they told me they do SIDRAS .Is this any different than doing a SIDRA IRA Services with with my roth . I would not have to get a lawyer or a lawyer to set up the LLC fr the SIDRA. The Chase one is self directed with checkbook control . Am i missing something here. I am just doing notes homes ,hard money lending and want to do it out of my ROTH, I know the rules etc. I am in texas but will be doing the lending in Florida to a few business I am familiar with .

thank you in advance for your advice and experience.

0 Votes

Great info thank you. More involved than I though, devils in the details.

0 Votes

Thank you all ,yes I suspected that would have to get a real appraisal of some type , I’ll do it . Thank you for the responses.

0 Votes

yep already have one.

0 Votes

All Forum Posts by: Glenn N.

Glenn N. has started 12 posts and replied 47 times.

Post: income for solo401k passive income

Post: income for solo401k passive income

Post: Anderson Business Advisors

Post: SIDRA Custodian Recomendations

Post: Hard money lending in Texas restrictions.

Post: Sidra with Chase bank

Post: Sidra with Chase bank

Post: Inherited Home determining Basis?

Post: Inherited Home determining Basis?

Post: Inherited Home determining Basis?