Popular Articles
Can I have a self-directed IRA if I participate in a retirement plan at work?
Yes, and this very common. Participating in a 401(k), 403(b), pension, or any other workplace retirement plan has no effect on your ability to open or maintain a self-directed IRA. A common path to self-direction Many people use their workplace plan ...
How do I open a bank account for my Solo 401(k)?
Open a trust or commercial account using the plan trust's EIN, provide your Trust Agreement or Certificate of Trust, and sign as trustee. The account belongs to the plan trust, not you personally. What type of account do I need? You need a trust ...
Can I lend money to or borrow from my plan?
It depends on the plan type and the direction of the loan. Extensions of credit between an IRA and a disqualified person in either direction are always prohibited. A Solo 401(k) is the exception; it allows you to borrow from your own plan under ...
Is the Solo 401(k) exempt from UDFI?
Yes, a Solo 401(k) has an exemption from certain types of Unrelated Debt Financed Income (UDFI), which makes this the preferred plan for eligible real estate investors. IRC Section 514(c)(9) exempts qualified retirement plans, including Solo 401(k)s, ...
When and how do I file Form 990-T?
Form 990-T is the Exempt Organization Tax Return filed when a retirement plan owes Unrelated Business Income Tax (UBIT). Filing is required when gross UBTI or UDFI income exceeds $1,000 in a tax year. The return is filed on behalf of the plan, not on ...