Harvard Law Attorney George Blower leads an in-depth discussion of the rules regarding making 2021 Solo 401k Contributions for your self-employed business taxed as a sole proprietorship, single-member LLC or 1099-MISC/NEC Independent Contractor.
2:19 Solo 401k Contribution Limits
17:54 Scenarios & Examples
29:38 How to Use Online Calculator
30:53 How to Make Solo 401k Contributions
32:42 Solo 401k Contribution Deadline
34:04 How to Report Contributions
42:03 What is Not a Contribution
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The solo 401k plan, commonly referred to as self-directed Solo 41k is the retirement plan of choice for self-employed individuals or owner-only businesses including for the features highlighted below:
-The highest contribution limits for any defined contribution plan including up to $57,000 (or even $63,500 if you are 50 or older) for 2020 (for 2021: $58k or $64.5 if you are 50 or older).
-The ability to make pre-tax, Roth, and even Mega Backdoor Roth contributions.
-401k participant loans of up to $50,000
-Invest with checkbook control in real estate, cryptocurrencies, notes, private placements, and other types of alternative investments.
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For over 10 years, My Solo 401k Financial is the leading self-directed solo 401k provider having helped over 8,000 clients take control over their retirement funds by focusing on superior knowledge, expertise, and customer service with over 100+ 5-star verified customer reviews on the Better Business Bureau (BBB)….(read more)
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Hello, thank you for the video. I file as a sole proprietor (via 1099s). I do not pay myself a salary throughout the year. Can I still contribute as an employee and an employer? No other jobs or retirement accounts. No employees.
Do you have a video for S corp 401k calculation
I opened my account with this guy company. Great support and great service, highly organized. Definetely recommend.
isn't the Employer contribution limit now as up to 25% of the total compensation?
I have not had a reason to give my spouse a 1099 or w2 for our 2 person business in our sole proprietor/ independent contractor business as we have filed jointly .
now that we are in pursuit of solo 401 k plans, how should I pay my spouse ? 1099 , w2 , 1099 and Schedule C ?
Do you have to make the self employment income under the business that sponsors the Solo401K or can you make the self employment under any business you own and still contribute to the Solo401k, sponsored by a different business? – Thanks again George!!
Hi George, another great video. What type of contribution has to be deducted by the 1/2 self employment tax – Is it both Employee & Employer? Then you can do 100% of the 1/2 self employment to a Pre-Tax and/or Roth; Then 20% of the 1/2 Pre-tax as an Employer contribution. Am I understanding that correctly? Thank you
Would nongovernmental 457 contribution at "Day job" in addition to the 403b account at "Day Job" reduce your contribution amount from $57000?
I have Used MY Solo 401k for 3 years, very professional service and a great value. I hate that I usually miss the live streams, glad I can watch later. Keep up the great videos please
If I took a cares act 401k loan of 20k can I take another solo401k loan of 50k after the cares act 401k expired
I have no plans to take a loan against my SOLO401K, but for those that do;
If you are holding say a rental that is worth150K that you bought for 100K with a 50K down payment from the account, what constitutes the 50%? The down payment amount, the equity, or the overall value? Thanks for the great presentation!
I have had my SOLO401K for many years. I am thinking of 'semi-retiring' and the nature of my job is a limited number of larger jobs (architecture/design). What happens if I have 'intermitent years' of income vs no income? Do I need to terminate my plan then? I was hoping NOT to have to roll it to a SDIRA as I have leveraged real estate in it.
Hello, I have a question on back door Roth IRA for year 2020. What is the deadline for Roth IRA conversion? Is it calendar year Dec 2020? I know regular contribution is till tax deadline April 15th, 2021. Thanks in advance. It is a non solo Roth 401K question.
Great video. Very concise. Glad I Wish I found your channel sooner; but glad to have found it nevertheless. I wish I had known that the deadline to setup a solo 401k plan was extended. I rushed to set the plan up before the end of the year and mistakenly used my business EIN as the plan EIN. Will I have to cancel that plan or can I keep it and contribute to it before the April 15 deadline?
Thank you for the great participation! Here are the videos mentioned in the webinar:
Can I keep using my SoloK without doing anymore contributions if I close my business.