Who wins? SEP IRA vs Solo 401(k)

  görünümler 6,167

IRAFinancial

Yıl önce

Learn more about the Solo 401(k) - www.irafinancialgroup.com/sol...
--
As a small business owner, or self-employed individual, it's important to start a retirement plan for yourself (and employees, if you have them). Two popular options are the Solo 401(k) and SEP IRA, but which one is better?
--
Discover more videos by IRA Financial: trshow.info...

Subscribe to our channel: trshow.info...
--
About IRA Financial:

IRA Financial Group was founded by Adam Bergman, a former tax and ERISA attorney who worked at some of the largest law firms. During his years of practice, he noticed that many of his clients were not even aware that they can use an IRA or 401(K) plan to make alternative asset investments, such as real estate. He created IRA Financial to help educate retirement account holders about the benefits of self-directed retirement plan solutions.

Learn More: www.irafinancialgroup.com/abo...

YORUMLAR
Who_Dat?
Who_Dat? 6 aylar önce
Is Self Directed 401K means the same as Solo 401K? I think so but asking for a friend.
IRAFinancial
IRAFinancial 6 aylar önce
@Who_Dat? That is correct - $26k plus 20% of net schedule C income, since it's a single member LLC and not taxed as an S Corp. Thanks!
Who_Dat?
Who_Dat? 6 aylar önce
My situation is a little unique. I’m LLC with a W-2. I was not able to be SCorp in time since I missed the due date filing for 2020. I’m over 50, therefore, I contributed $26000 to my self directed 401K in 2020. I will take the additional 20% employer contribution (net income of $50K after I paid myself $36000 in wages). Therefore, my total contribution will be $35000+$10000=$45000. Is this correct? Or, do I have to be SCorp in order to contribute to $26000 to self directed 401K. Thank you 🙏
IRAFinancial
IRAFinancial 6 aylar önce
Yes, essentially they are. Solo 401(k) is the retirement plan for the self-employed. Self-Directed simply means that you are in charge of the types of investments you can make.
Harvey
Harvey 6 aylar önce
Great and simple explanation! When you open Solo 401k can you use your contribution for investment opportunities like stock, etc?
IRAFinancial
IRAFinancial 6 aylar önce
Yes, you can invest in anything that is not strictly prohibited by the IRS, such as collectibles. That means, you can invest in traditional investments, such as stocks, bonds and mutual funds, or non-traditional investments (alternatives), like real estate, gold, and even Bitcoin.
Danny Delorean
Danny Delorean 6 aylar önce
Thank you Adam! I have two questions for you. 1. If I already contribute $6,000 to my Roth IRA, does that affect my contribution limit to a SEP IRA? 2. I am currently a W2 consultant. If I am no longer self employed in the future, what happens to my Solo Roth 401k? Am I able to roll it over to my new employer’s 401k without penalty?
Danny Delorean
Danny Delorean 6 aylar önce
@IRAFinancial thank you! I think the flexibility of tax free growth with the Solo Roth 401K is hard for me to pass up. I will look into opening one up today!
IRAFinancial
IRAFinancial 6 aylar önce
Hi Danny, you Roth IRA contributions do not affect the amount you may put away in a SEP IRA. If your new employer allows for it, yes you should be able to roll it over without penalty. Alternatively, you can move it to a Roth IRA
HCG Diet Miami & HCG Near Me
HCG Diet Miami & HCG Near Me 8 aylar önce
I own a an LLC and we are taxed as an s corp. for me to get the solo 401k do I have to be a w2 employee? Or as the owner is that sufficient to open a solo 401k? Also, what’s your opinion of having a solo 401k and a traditional ira for the purpose of reducing taxes? Made a lot of money this year and I want the best mix of tax saving retirement investments.
IRAFinancial
IRAFinancial 8 aylar önce
@HCG Diet Miami & HCG Near Me To max out the Solo 401(k), you need approximately $150,000 in income (a little more if you are at least 50 and contribute the catch-up amount). You can check out our calculator to see how much you can contribute based on different incomes - www.irafinancialgroup.com/401k-contribution-limit-calculator.php
HCG Diet Miami & HCG Near Me
HCG Diet Miami & HCG Near Me 8 aylar önce
@IRAFinancial what would be the max amount I should w2 myself in order to take the maximum solo 401k amount?
HCG Diet Miami & HCG Near Me
HCG Diet Miami & HCG Near Me 8 aylar önce
@IRAFinancial thank you
IRAFinancial
IRAFinancial 8 aylar önce
Hi - need W-2 income to take advantages of making contributions to the plan. In other words, if your company makes $1 million of profit but you take just $50K in W-2 salary, your solo 401k contributions are based on the $50K W-2 amount and not the profit of the business. And of course, contributing to an IRA on top of the 401(k) is always a great idea to reduce taxes! Thanks for the questions.
High Growth Labs™
High Growth Labs™ 9 aylar önce
Finally somebody answering my questions. Thank you!
Derek Wickwire
Derek Wickwire 9 aylar önce
Thank you
 Plant Based Nutrition ヴィーガン栄養学
Plant Based Nutrition ヴィーガン栄養学 9 aylar önce
Thank you for the video! I wish the audio quality was a bit better. But I appreciate your video!
John Daniels
John Daniels 11 aylar önce
Great explanations but I'm more of a visual learner and lose you sometimes, Visual Aids would have been very helpful
Shelly McPhatter
Shelly McPhatter 11 aylar önce
Thanks for the video. I'm 35 , with a single owner S-Corp, can I make BOTH the max 57K SEP IRA contribution AND the max 57K soloK contribution or do I have to do one or the other? I take it, if I can only do one you would suggest maxing out the soloK.
IRAFinancial
IRAFinancial 11 aylar önce
Hi, you have to choose one or the other. There's really no advantage to having both. Since you don't have any full time employees, the Solo 401(k) is the better plan for most savers. Thanks for the question!
The Situation
The Situation Yıl önce
I'm a small business owner and the only (W2) employee of my business, file as an S-Corporation and currently have a Traditional and a Roth IRA. I haven't made any employer contributions to any of my retirement accounts, as I've had these before I started my business. So I have only made self contributions. Not sure if I should convert my Traditional to a Solo 401k and keep my Roth? Will I still be able to contribute 6k/year to my Roth if I have a Solo 401k? I'm a bit confused and unsure. Any advice?
IRAFinancial
IRAFinancial Yıl önce
@The Situation Of course! Everyone is unique so one plan might be better than the other. A SEP IRA is a great choice as well. We love seeing people, especially those who are self-employed, proactive about saving for retirement! Good luck bud!
The Situation
The Situation Yıl önce
@IRAFinancial Thank you for sharing. I do see the benefits and value of a Solo 401k however, in my personal situation, I am fine with the SEP IRA contribution limits of 25% (being I am an S-Corp) and I am not looking to use any of the money for the loan features or for real estate. So for me personally, I think a SEP would be just fine and be easier to Rollover and has no forms to be filed either.
IRAFinancial
IRAFinancial Yıl önce
Hey Sitch, Yes, you can open a Solo 401(k) and rollover your traditional IRA into the plan. You may still contribute up to $6,000 to your Roth IRA, even if you contribute to a Solo 401(k). In fact, if you have enough earned income for the year, you may max each plan!
Şeyma Subaşı - Back to YouTube
13:58
Şeyma Subaşı
görünümler 464 B
Sadakatsiz 32. Bölüm Fragmanı
0:46
Sadakatsiz
görünümler 2,1 Mn
Introducing iPhone 13 Pro | Apple
2:41
Apple
görünümler 12 Mn
Becoming a Millionaire: ROTH IRA vs 401k vs SOLO 401k  (FASTER!)
9:22
Clint Coons: Real Estate Asset Protection
görünümler 22 B
What Strategy Makes More Sense The SEP or 401k
10:20
Mark J Kohler
görünümler 26 B
SEP IRA Pros and Cons
6:13
Equity Trust Company
görünümler 20 B
How To Flip & Wholesale Real Estate in a Self-Directed IRA or Solo 401(k)
1:15:37
Mat Sorensen - Attorney, Author, SDIRA Expert
görünümler 463
You Need to Avoid These 3 Investments in your IRA
12:46
One of the Greatest Speeches Ever | Steve Jobs
10:31
Motivation Ark
görünümler 8 Mn
Şeyma Subaşı - Back to YouTube
13:58
Şeyma Subaşı
görünümler 464 B
Sadakatsiz 32. Bölüm Fragmanı
0:46
Sadakatsiz
görünümler 2,1 Mn
Introducing iPhone 13 Pro | Apple
2:41
Apple
görünümler 12 Mn
Bana Güvenebilir misiniz? [8K]
19:45
iPhonedo Türkiye
görünümler 57 B
Üç Kuruş | Teaser
0:26
Çukur
görünümler 595 B
Son Yaz 22. Bölüm 4. Fragmanı
0:51
Son Yaz
görünümler 1,1 Mn
Masumlar Apartmanı 38. Bölüm
2:25:56
Masumlar Apartmanı
görünümler 2,3 Mn