Comments on: The Origin of Solo 401k http://thefinancebuff.com/the-origin-of-solo-401k.html like a friend telling you about money ... Fri, 10 Feb 2012 17:31:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: TFB http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-4795 TFB Mon, 27 Sep 2010 00:12:04 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-4795 howard - No, your contributions must be in cash. Unless you are talking about individual bonds that will cost you a lot to sell, you can sell from your taxable account, contribute, then buy in your solo 401k. howard – No, your contributions must be in cash. Unless you are talking about individual bonds that will cost you a lot to sell, you can sell from your taxable account, contribute, then buy in your solo 401k.

]]> By: howard http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-4794 howard Mon, 27 Sep 2010 00:03:21 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-4794 I'm going to open an individual 401K account this year. I have bonds in a taxable account I'd like to contribute rather than funding the account with cash. Can I do that? I’m going to open an individual 401K account this year. I have bonds in a taxable account I’d like to contribute rather than funding the account with cash. Can I do that?

]]> By: TFB http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3877 TFB Sun, 25 Apr 2010 03:50:18 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3877 Roy - You convert the 100k into a solo 401(k) and then convert the 40k to Roth IRA. That way there is no/minimal tax due on the Roth conversion. Roy – You convert the 100k into a solo 401(k) and then convert the 40k to Roth IRA. That way there is no/minimal tax due on the Roth conversion.

]]> By: roy http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3876 roy Sat, 24 Apr 2010 23:47:33 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3876 TFB I am having a hard time understanding how you are achieving any benefit. Lets say you have 40K in a money market non-deductible traditional IRA. And you have 100K in a rollover IRA (the rollover was from a 401k). If I do nothing and put all this money into Roth, I pay taxes on the 100k. What you are doing (I think) is converting the 40K into a solo 401(k) and then transfer that to Roth IRA. You will end up paying taxes on that 100k. I guess I am wrong somewhere but where? TFB
I am having a hard time understanding how you are achieving any benefit.

Lets say you have 40K in a money market non-deductible traditional IRA. And you have 100K in a rollover IRA (the rollover was from a 401k). If I do nothing and put all this money into Roth, I pay taxes on the 100k.

What you are doing (I think) is converting the 40K into a solo 401(k) and then transfer that to Roth IRA. You will end up paying taxes on that 100k.

I guess I am wrong somewhere but where?

]]> By: TFB http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3237 TFB Mon, 18 Jan 2010 19:36:08 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3237 KD - Up to a dollar amount with your self-employment income, yes, you can contribute to your own plan in lieu of your employer's plan. Read my other post on <a href="http://thefinancebuff.com/2008/11/solo-401k-for-part-time-self-employment.html" rel="nofollow">solo 401k and part-time self-employment</a>. KD – Up to a dollar amount with your self-employment income, yes, you can contribute to your own plan in lieu of your employer’s plan. Read my other post on solo 401k and part-time self-employment.

]]> By: KD http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3234 KD Mon, 18 Jan 2010 15:11:46 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3234 I was wondering this: Lets say, I have a full time employment with a 401k plan with poor choices and no match. I have some self-employment income which is no where close to full time employment income. Then can I open a solo 401k and contribute till maximum $16500 to the funds or stocks of my choice? I was wondering this: Lets say, I have a full time employment with a 401k plan with poor choices and no match. I have some self-employment income which is no where close to full time employment income. Then can I open a solo 401k and contribute till maximum $16500 to the funds or stocks of my choice?

]]> By: Joel http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3233 Joel Sun, 17 Jan 2010 21:35:04 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3233 Keep in ind that if their is need for permanent life insurance the one person 401k can utilize tax deductible life insurance in the plan. Thus making the plan self completing in case of death. Keep in ind that if their is need for permanent life insurance the one person 401k
can utilize tax deductible life insurance in the plan. Thus making the plan self completing in case of death.

]]> By: TFB http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3228 TFB Fri, 15 Jan 2010 22:03:12 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3228 enonymous - I think it's better if you create some self-employment income. There are so many personal service things anybody can do: wash cars, mow lawns, walk dogs, house sitting, tutor kids, ... enonymous – I think it’s better if you create some self-employment income. There are so many personal service things anybody can do: wash cars, mow lawns, walk dogs, house sitting, tutor kids, …

]]> By: enonymous http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3227 enonymous Fri, 15 Jan 2010 21:48:20 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3227 If I don't have any self employed income, can I open a solo 401k simply for the purpose of this rollover? If I don’t have any self employed income, can I open a solo 401k simply for the purpose of this rollover?

]]> By: dns http://thefinancebuff.com/the-origin-of-solo-401k.html#comment-3223 dns Fri, 15 Jan 2010 02:23:58 +0000 http://thefinancebuff.com/2010/01/the-origin-of-solo-401k.html#comment-3223 TFB I read about the solo 401 on this blog and your comments on the bogleheads forum. What a GREAT idea! I did exactly what you outlined, and converted the remaining dollars (essentially all non deductible) into a Roth. I will also use the solo 401 to receive in service withdrawals from a high cost 40, reducing my investment expense. Thanks TFB
I read about the solo 401 on this blog and your comments on the bogleheads forum. What a GREAT idea! I did exactly what you outlined, and converted the remaining dollars (essentially all non deductible) into a Roth. I will also use the solo 401 to receive in service withdrawals from a high cost 40, reducing my investment expense. Thanks

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