The late filing penalty for solo 401k plans that have over $250,000 in plan assets or have been terminated increased to $250 per day up to $150,000. While you may be able to abate this hefty penalty for a late 5500-EZ filing you should be very very careful.

—————————————————–
Join this channel to get access to perks:

—————————————————–

/////////////////////////////////////////////////
Get answers FASTER…
Join this channel to get access to perks:

Chat on discord:
Join Link

Support on Patreon:

Get IRS FORM W4 TAX WITHHOLDING HELP HERE STARTING AT $39. bit.ly/3FJ6w8U
—————————————————–
Are you ready for professional investment advice? We can help you with financial planning and asset management. Let us guide your investments to your financial freedom. START HERE

Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.

TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™

Company Website:
twitter: @travissickle
Instagram:
Facebook:
LinkedIn:

Sickle Hunter Financial Advisors
1646 W Snow Avenue
Suite 144
Tampa, FL 33606

Check out Google Business Profile
——————————————————-

Gear Used in Videos

Partnership referral links
Solo 401k Plan Documents
Aura Identity Theft Protection *Up to 50% off* HTTPS://www.aura.com/travis
Bitcoin IRA

All Amazon links are affiliate links
____________________________________________________________________________
Information in this video is for educational and entertainment purposes only.
sicklehunter.com/disclosures
____________________________________________________________________________

#travissickle…(read more)

LEARN MORE ABOUT: 401k Plans

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

$150,000 Penalty for Solo 401k: Beware of Costly Mistakes

Retirement planning is a crucial aspect of financial management, and for self-employed individuals, a Solo 401k can be an excellent tool to secure their future savings. However, failing to adhere to the stringent rules governing Solo 401k accounts can result in hefty penalties. One such penalty that stands out is a staggering $150,000 fine.

The Solo 401k is specifically designed for self-employed individuals or small businesses with no full-time employees, other than the business owner and their spouse. It offers various advantages, such as higher contribution limits and the opportunity to make both employer and employee contributions. Additionally, it provides flexibility in investment options, allowing account holders to invest in stocks, bonds, mutual funds, real estate, and more.

While the Solo 401k offers unique benefits, it is essential to understand and follow the specific requirements associated with these accounts. The Internal Revenue Service (IRS) has set strict guidelines to ensure compliance, and any deviation from these rules can result in substantial penalties.

One common mistake that can lead to the hefty $150,000 penalty is violating the “controlled group” rules. According to these rules, if an individual has ownership interests in multiple businesses, all those businesses are considered one entity for the purpose of determining whether they meet the eligibility criteria for a Solo 401k. It is crucial to understand this rule to avoid inadvertently misclassifying your business.

Another issue that can lead to penalties is failing to make accurate account valuations. The IRS requires Solo 401k account holders to report their plan assets at their fair market value each year. This valuation process should be done meticulously, and failure to do so can result in underreporting or overreporting of assets, subsequently triggering IRS penalties.

Furthermore, it is important to ensure that the Solo 401k account stays compliant with the contribution limits set by the IRS. Contributions made to the account are subject to annual limits, which can change over time due to inflation adjustments. As a Solo 401k account holder, it is vital to stay informed about these limits and prevent any excess contributions, as they can lead to penalties and potential disqualification of the plan.

The IRS employs stringent audits to identify and penalize individuals who fail to comply with Solo 401k rules. Therefore, it is advisable to seek professional assistance from a financial advisor or tax professional with expertise in retirement plans. They can guide you through all the necessary steps and help you avoid costly mistakes that could jeopardize your retirement savings.

In conclusion, a Solo 401k account can be an excellent retirement savings vehicle for self-employed individuals. However, it is crucial to be knowledgeable about all the rules and regulations associated with it. Violating these rules can result in severe penalties, including the eye-watering $150,000 fine. By understanding and adhering to the Solo 401k requirements, individuals can safeguard their retirement savings and ensure a financially secure future.