Solo 401k – 5 Reasons Why You SHOULD Use the Solo 401k | Mark J Kohler


Hey mark Kohler here CPA attorney best-selling author radio show host all about the American Dream Making money saving money helping your business. Go to the next level. We got to talk about the solo 401k They’re amazing. And I want to give you five benefits to a solo 401k explain what they’re about and wow you Number one reason why small business owners should consider a solo 401k is because they’re easy. They’re simple 15 years ago They didn’t even exist now get into affordability later. They can be deceptively expensive I’ll come to that but they’re simple and easy for the average small business owner You your spouse your kids your business partner their family members can all participate in the same 401k now if you have employees you got to do the group thing but if you want that circle of family and business owners to kind of work together in a 401k they’ve never been Easier they can all participate in one without the cross testing and the top-heavy issues and all that baggage that comes with a group Think about it. They’re amazing. Number two. You can put a ton of money into a 401k Four times what you could do in a regular Roth or traditional IRA? That’s eighteen thousand five hundred dollars per person plus matching of up to fifty five thousand now I’m not saying I put fifty five thousand in the 401k Watch my other video on the sweet spot of where to be on the 401k in your business But this is a big deal If you’re 50 years old or over you can even do catch-up provisions to take you that even to another level Folks if you want to put money away for retirement and you can afford to do it in your small business if you’re at that Point there’s no better vehicle that you can get the efficiency with than the 401k number three I love the 401k because you can tailor make it to your situation and do Roth or traditional Contributions. It’s kind of like a honeycomb you can say well I’m gonna put money in the Roth cell this year because I don’t need the tax write-offs and I want to Get that Tax-free growth going or you can say I need the write-off. I’m gonna do a traditional Contribution plus the match and the write-off because that’s where I need to be this year So you can pick and choose with your solo 401k You can tailor make it to what fits you best from year to year when it comes to tax reductions number four and you knew I was gonna say it you can Self-direct your 401k you can invest in what you know best you can be the trustee of your own 401k You’re not stuck with just Wall Street products, and I’m not saying they’re bad. You want to have a mix? I want you to have some stocks bonds mutual funds all that good stuff But also shouldn’t you be investing your 401k and what you know best maybe it’s notes real estate cryptocurrency I don’t know. What do you love to invest in? Let’s take your 401k and an invest in what you know best number five They can be affordable. And I’d love that now why I say they can be is because they can be deceptively expensive now You’re gonna go out on the web and you’re gonna find a 401k a self-directed 401 K that’s free of charge to set up Oh, but they’re gonna get their fees trust me. There’s administrative fees management fees financial planning fees. It’s all on the back end You’re gonna pay for it and that may be a perfect fit for you But if you want to self-direct your 401k right out of the gate, why not trustee your own 401k? We’ve been setting those up for years in our firm and for 300 bucks a year. You control it. That’s it And then you just have to report and file the taxes for the 401 K and get a binder and the rules To manage it yourself No other hidden fees in summary the 401 K for a small business owner has never been better They’re amazing to defer taxes to create tax-free income inside a Roth 401 K and to control it and administer it yourself It’s amazing So look into it Understand the rules get a consultation and make sure you make an informed decision on which 401 K is best for you Thanks so much for watching that video and I want to be your source for tax and legal strategies It’s hard enough to live the American dream without being out on the web on Google trying to find answers to complex Questions and just click in a mouse hoping you got it, right My team and I want to be a huge resource treatment the law firm accounting firm by Education resources on my site. Please continue to follow these strata I know the safety thousands now click here if you want to be a part of my newsletter It’s awesome weekly updates and deadlines and strategies and tips also subscribe to my youtube channel You’ll love it and make sure to click the bell icon So you get a little ping whenever there’s a new video and finally check out my site Marjory Kohler comm with all sorts of videos probably 70 plus videos 30 plus hours of content that’ll save you thousands

10 thoughts on “Solo 401k – 5 Reasons Why You SHOULD Use the Solo 401k | Mark J Kohler

  • Hey Mark,
    I've been looking into a SEP IRA, I read that it's good solution for an independent contractor like myself. What's attractive about it is that I can contribute more money during good year and less during a bad one. Do you think that the SEP IRA is the way to go for freelancers/independent contractors? Thanks in advance!
    -P

  • Hi Mark, for those of us who'd like to invest in single family housing rentals (or land) within a Solo 401k, when is it necessary to deed those real estate assets into LLCs first and then buy the LLC in the name of the Solo 401k? I'm confused.

  • Solo Roth 401k question: While investing in single family homes (for example), I as trustee am prohibited from living in any of my investment rental houses. However, let's say at retirement (after 59 1/2) I really want to live in one of the houses. Do I take the distribution of the house in-kind to some other legal entity, such as in an LLC's name (or my name)? Just wonderin

  • Hey Mark! Just as one filing Subchapter S can use a 401k to reduce the "reasonable salary" portion of their income, could one do charitable contributions as well from their personal account instead of the business account to reduce tax liability on that end rather then from the distribution side? Not sure if it's a simple answer, one you've already covered or if it would make a good video topic 🙂

  • Hey Mark, I've been freelancing recently, and I'm interested in putting most/all of my earnings into a solo 401k. Do I still need to pay quarterly estimated taxes on income I put into the solo 401k? Thanks!

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