Articles
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...
TRADING PENNY STOCKS WITH AN IRA
Penny Stocks are company stock offered on the Over-The-Conter Bulletin Board (OTCBB). OTCBB is an electronic system for selling certain SEC compliant securities that are not listed on NASDAQ or another national securities exchange. These Penny Stocks on OTCBB include...
INHERITED IRA U.S. SUPREME COURT CASE UPDATE & 3 OTHER IMPORTANT FACTS ON INHERITED IRAS & CREDITORS
The United States Supreme Court recently issued a 9-0 opinion holding that inherited IRAs are not exempt and protected from creditors in bankruptcy. As a general rule, IRAs receive special protections from creditors and cannot be reached by the creditors of the...
Self-Directed IRA Basics: What is a Self-Directed IRA, What Can a Self-Directed IRA Invest Into, and What is an IRA/LLC?
What is a Self-Directed IRA? A Self-Directed IRA is an IRA (Roth, Traditional, SEP, Inherited IRA, SIMPLE) where the custodian of the account allows the IRA to invest into any investment allowed by law. These investments typically include; real estate, promissory...
Roth IRAs Are for High-Income Earners, Too
Roth IRAs can be established and funded for high-income earners by using what is known as the “back door” Roth IRA contribution method. Many high-income earners believe that they can’t contribute to a Roth IRA because they make too much money and/or because they...
ROTH IRAs FOR KIDS: WHAT EVERY PARENT & INVESTOR NEEDS TO KNOW
Roth IRAs can be established and owned by anyone who has earned income and that includes children. As many savvy investors have come to understand, Roth IRAs offer the best tax-free treatment for investment income and returns in the tax code. But these accounts aren’t...
