All Forum Posts by: Mark Davidson

I agree with Todd which is why I ended up with Brian over at Safeguard Advisors.  I retired from a corporate real estate gig at a Fortune 500 so I've dealt with many professionals through the years.  Brian asked the right questions and articulated well thought out options to consider.  

We're still in the process, so I'll report back when everything is completely up and running, but I'm impressed.  I recommend him.  

I know Brian will personally talk with you by phone and you can compare him with the others.

It's my understanding that one's 401(k) has some of the greater asset protection laws - certainly better than an LLC outside a 401(k).

The retirement assets within the 401(k) are essentially untouchable which is one of the benefits to the solo 401(k).  However, if one leverages the property by doing the required non recourse loan, the lender could foreclose for non payment, but is not allowed to obtain a personal judgment. 

Hopefully, someone else can chime in to verify all that.

So I checked out a couple of solo 401(k)plan providers.  I'm here to tell you, there is a huge gulf between the two types of providers.  There are form providers and there are advisors who hand hold and know the right questions to ask you.  

I'm going with a highly skilled provider even though this entity, who is on bigger pockets and replied above, is substantially more than the form provider.  

Be sure you feel comfortable with the skill level of the support included with the setup and or maintenance fee.  

An anology:  One could go to a form store and get a Warranty Deed or pay an attorney to draft it.  The attorney might keep you from incurring a huge tax liability, future probate expenses, or a cloud on the title.  The form drafter would tell you what type of information is supposed to go on each blank line.  

The old adage remains true, you get what you pay for.

Thanks everyone.

Concerning the self employed business necessary to have a Solo 401(k), Is it OK to start one's business just days before actually setting up the Solo 401(k)?  I'm assuming so, but not one hundred percent.  

It is likely I will not have any actual income in the business until a few months after setting up the 401(k). 

Thanks Daniel,  Yet another reason why I always want the contract to be assignable.  Certainly from a buyer's perspective, I can't think of any good reason for it not to be assignable, yet many realtors check the box to make it non-assignable.  When asked, they can't explain why they did it, lol.

Yes, I can see a Solo 401(k) has a ton of benefits over a normal 401(k).  I can finally invest in a hard asset that I totally understand and control.  

What if someone decides to purchase a property in cash from the plan proceeds, but later decides to mortgage the property to gain additional funds to replenish the account for purchasing another investment property - keeping all loan proceeds and rental income within the 401(k) and making payments using only the funds within the plan. 

I'm assuming that's allowed. 

Mark

Merrill instilled fear in me about trusting anyone to accomplish setting up the new 401(k).  

Talk to me/us about the possibility of losing retirement savings to a plan provider entrusted to set up a rollover to a solo 401(k).  I can't be the only one with concerns. Is the plan provider even involved with the actual funding process?  

In other words, is the service provider in a position to have access to the account?

I do not have a Solo 401(k) yet. I was planning to do that soon, but this property popped up in my preferred location before I could get it accomplished.

My existing 401(k) is managed by Merrill Lynch and I've already liquidated my holdings into one cash equivalent fund.  They indicated getting me a check would take about ten days.  

Roughly, how long does it take to set up a Solo 401(k)?  It is possible the seller may not feel comfortable without a deposit, I don't know. 

I have funds in a 401-k plan from a former employer that I want to roll over to a solo 401-k; then, write a check to purchase an income producing property without financing. 

A desirable property just hit the market that has kicked this plan into high gear. 

Because there is little liability in the service business that qualifies me to utilize a Solo 401-k, I prefer to not incur the cost and maintenance of an LLC.

I've seen lots of examples of how property would be titled with a Solo 401-k with an LLC, but curious about a how folks title their property when it's just an individual person purchasing on behalf of their Solo-401-k. John Doe, trustee of the John Doe Solo 401-k? I'm drafting a purchase agreement.