All Forum Posts by: Ravi Veer

I eventually went with mysolo401k.net

Mark Nolan was very helpful in setting up my self-directed 401k. They are not paying me for this post. Just a satisfied customer.

The spotcrime website seems to be a good one too.

I wonder if there are any good places to identify trends over time:

- quality of schools - improving or declining?

- incidence of crime - increasing or decreasing?

David Beard, IRS is one hurdle. I was thinking of the other hurdle: Dept of Labor. Is it possible that DoL would construe this as "furnishing of goods, services, or facilities between a plan and a disqualified person" - a prohibited transaction under 4975(c)(1)(c)?

Brian Smith
I am not an ERISA attorney, so I am talking as a newbie to Solo-401k: I do not believe you can invest your 401k money into any business (like a C-Corp) where you are currently benefiting (for e.x. getting a salary from the C-Corp).

For example, this is probably a violation: "Allowing a disqualified person to currently benefit from the IRA's investments conflicts with the idea that tax-deffered funds are not truly 'owned' by the IRA account holder until they are withdrawn during "retirement years" and taxes are paid." (from http://amicuslawgroup.com/could-mitt-romneys-ira-be-disqualified-an-adventure-into-the-muddy-waters-of-the-prohibited-transaction-rules/ )

Jeff S Thanks for the pointer. Read the thread you pointed. Am starting to read the eBook. Eric Archer in the book says

Am wondering if real estate in a 401k would need similar protection from LLC. For example, let us say the 401k directly owns three properties (without an intermediate LLC). Someone has an accident in slippery snow and falls in one of the properties. Could all three properties be exposed to lawsuit?

David Beard and Jerry Thank you and David for correcting me. I got things mixed up earlier. I looked at quite a few places now - there is no minimum requirement for number of hours to be spent in the self-employment activity.

However, I am curious about the advice from David's solo-k administrator that no self-employment activity in a year requires termination of the solo 401k plan. Wonder why that is the case.

In a 401k plan established when I am employed at a large company, I am allowed to keep the 401k funds at that company even I no longer work at the company. Seems like similar rules would apply for solo-401k.

Jerry K., I believe you must be spending more than 1000 hours on that business for that business to be able to open a 401k.

Jeff S
Can you elaborate on why an LLC may not be required for a SD-401k? I think you implying that the 401k itself provides asset-protection, that an LLC may not add much additional protection. Just wanted to confirm if I am reading it right.

Linda Daignault, I am in a similar boat: My wife is a realtor. I was told that she could not earn a commission on a transaction in which my IRA buys a property.