Podcast: Solo 401k 2018 Year End Tax Strategy & FAQ

A Self-Directed Solo 401k With Checkbook Control is a powerful tax planning tool, providing $10,000’s – up to $122,000 of annual tax deductions. Since the passing of tax reform in 2017, the Checkbook 401k has become even more important, as a key tool for maximizing Section 199A Qualified Business Income 20% tax-deductions. For key 2018 year-end tax strategy and tips, listen to Commercial Real Estate Pro Network Show Episode 172: Solo 401K with Bernard Reisz and J Darrin Gross.

Checkbook Solo 401k 2018 Year-End Tax Planning Tips Discussed

With the passing of The Tax Cuts and Jobs Act in December 2017, effective tax planning requires that we take advantage of the tax benefits created by the law and minimize the impact of unfavorable aspects of the new tax law.

  • What’s the difference between a Self-Directed Solo 401k and and an SDIRA?
  • What’s unique about Qualified Retirement Plans?
  • Is an an IRA a QRP?
  • Is a Checkbook Solo 401k a QRP?
  • Does a QRP require a custodian?
  • Does a QRP owe UBIT tax when investing in leveraged real estate?
  • What’s the new cap on State and Local Tax deductions?
  • What’s the 20-percent Qualified Business Income Tax Deduction? What’s 20-percent deduction for pass-through businesses?
  • What are the phaseouts for this powerful tax deduction? What are the income limits?
  • What are specified service businesses and what limitations do they face?
  • How can I use a Checkbook Solo 401k to maximize and increase my 199A 20% tax deduction?
  • How can I use a Checkbook Solo 401k to mitigate the State and Local Tax (SALT) deduction cap?
  • Who qualifies for a Checkbook Solo 401k? Do I qualify for a Checkbook Solo 401k?
  • Is a Checkbook Solo 401k better than a Checkbook Self-Directed IRA?
  • What are the powerful real estate investment benefits available to a Checkbook Solo 401k?
  • When is the Checkbook Solo 401k exempt from UDFI?
  • What are the Checkbook Solo 401k “Prohibited Transactions?” How do I avoid them?
  • What is a non-recourse loan and why do I need one?
  • Do I need an LLC or S-corp to have a QRP?
  • Why does congress allow such powerful tax tools as the QRP for business owners that don’t have employees?
  • What investments are available to a Qualified Retirement Plan? QRP Real estate? QRP Cryptocurrency? QRP Gold and Silver? QRP Private Lending? Life Settlements?
  • What investments are not allowed to Qualified Retirement Plans?
  • What is a Checkbook Solo 401-LLC? What are the benefits of a Checkbook Solo 401k-LLC?
  • What is the Checkbook Solo 401k loan carve-out?

Now, before 12/31, is the time to implement tax strategy. The deadline for adopting a Solo 401k, for 2018 tax benefits, is December 31, 2018. The 2018 tax-deductible contributions to the Qualified Retirement Plan can be made up to the tax-filing deadline of your business, including extensions. A Solo 401k QRP can be an integral part of your tax strategy and this podcast episode tells you how.