Articles
MAXIMIZING 401(K) CONTIBUTIONS WITH YOUR S-CORP
As we reach the end of the year it is time to start thinking about how to best maximize your annual retirement plan contributions. One of the most commonly used strategies for our clients is an s-corporation and 401(k). A properly structured s-corporation is utilized...
WHAT EVERY SELF DIRECTED IRA INVESTOR SHOULD KNOW ABOUT PRECIOUS METALS
Precious metals have been a popular investment for retirement plans since the financial market collapse in 2008. Most standard IRAs with financial institution custodians will typically only offer precious metals through funds or other complex structures whereby the...
3 KEY LEGAL TIPS WHEN BUYING A BUSINESS
Every buyer of a small business should consider the following three key legal issues when acquiring a business. 1. Buy Assets and Not Liabilities. Most small business purchases are done as what are called “Asset Purchases”. In an Asset Purchase the buyer of the...
The Roth IRA to Roth 401(k) Rollover Roadblock
A Roth IRA cannot be transferred or rolled over to a Roth 401(k). That comes as a surprise to many Roth IRA owners who later establish or participate in a Roth 401(k) as Traditional IRAs can be rolled over to Traditional 401(k) accounts. However, because of some...
When Does Raising Money in an LLC, Joint Venture or Partnership Violate Securities Laws?
We’ve all heard the buzz words of crowdfunding, PPMs, and IPOs, but there are less complicated ways to raise money and start a business and one of the most reliable and most used methods is that of partnerships or joint ventures. If you ‘re raising money from others...
Getting $50K from Your Own 401(k): The 401(k) Loan Option
Do you need access to your retirement account funds to start a business, to pay for non-traditional education expenses, to make a personal investment, or to pay off high interest debt? Rather than taking a taxable distribution from your 401(k), you can access a...
Tax Court Rules Against Self-Directed IRA Owner Who Failed to Properly Make a Real Estate Investment
In a recent U.S. Tax Court case, the Court ruled against an IRA owner and deemed his IRA distributed and taxable as the IRA owner failed to properly execute his intended self-directed IRA real estate investment. Dabney v. Commissioner, T.C. Memo 2014-108. The IRA...
Maximize Roth 401(k) Dollars: What Can You Roll-Over or Convert to Roth in Your Solo 401(k)?
Many savvy investors have come to find Roth retirement accounts as a great tool to building long-term tax-free wealth. Roth IRAs were first introduced in 1997. Roth 401(k)s came around in 2006 but had many restrictions and were not widely offered. Under current 401(k)...
ROTH IRA’S INHERITED THROUGH A TRUST: SPOUSAL ROLLOVER PERMITTED WHERE SURVIVING SPOUSE HAS CONTROL
In a recent Private Letter Ruling (PLR 201423043), the IRS stated that a deceased person’s Roth IRA may be inherited by the Roth IRA owner’s surviving spouse through their Trust when the surviving spouse was the sole beneficiary and had sole control of the Trust upon...
California Franchise Tax Exemption for 401(k)/LLCs: When Can You Keep Your $800?
Limited Liability Companies (LLCs) owned by a 401(k) or other qualified retirement plans (e.g. profit sharing plans, defined benefit plans) can be exempt from the California Franchise Tax, when the LLC is used exclusively for the purpose of acquiring and holding real...