Attention Self-Directed Investors!
Must Know Tax Court Ruling: SDIRA, QRP, Solo 401k, Checkbook IRA, IRA-LLC, IRA-Trust, HSA, & ESA
Tax Court Opinion: ANDREW MCNULTY AND DONNA MCNULTY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
- Watch out for “promoters!”
- Lots of Tax Turkey & Red Herring out there!
- Neither the IRS, nor the Tax Court, appear to be attacking the Checkbook IRA structure.
- The ruling – in its essence – has nothing to do with Checkbook IRAs, but:
- Checkbook IRAs clearly provide greater opportunity for running afoul of the Tax Court rules
- There is some concern that the Checkbook IRA structure can be deemed to inherently run afoul of the Tax Court ruling
- Creates questions for all self-directed retirement accounts, including QRP, holding personal assets
- Creates questions for all arrangements in which person touching assets “wears more than one hat.” This includes QRP & Solo 401k!
- Implications for many SDIRA structures – that don’t involve an IRA-LLC or IRA-Trust – that flunk custody! (For example, certain crypto arrangements)
- QRP (incl. Solo 401k) may have a leg-up on SDIRA (Very nuanced discussion)
- Using a QRP-LLC may undermine whatever “leg-up” a QRP may have over an SDIRA!
- Always create and maintain a clear trail of transactions!
- At all times, the role in which you’re acting – you’re “capacity” – must be unequivocal & unambiguous.
- Never, ever take physical possession!
- Don’t ever touch cash!
- Be extra cautious with fungible assets that have no clear evidence of “title” (e.g., gold, silver, bullion, precious metals)
- Creates uncertainty for crypto assets, especially crypto assets moved to “cold storage.”
- Created questions regarding all personal assets
- The Tax Court left many of the IRS arguments unresolved, so steer clear of any of those!
Continue reading “Demise of the Checkbook IRA, QRP, Solo 401k?”
In this post, we focus on CARES Act implications & strategy for tax-favored self-directed retirement accounts
: Individual Retirement Arrangements (IRA)
, Qualified Retirement Plans (QRP)
, Self-Directed IRAs (SDIRA)
, Solo 401k
, Employer 401k plans
& many other QRPs.
The CARES Act, short for Coronavirus Aid, Relief, and Economic Security Act, is a massive $2,000,000,000,000+ tax and spending package signed by President Trump on March 27, 2020. The CARES Act includes many forms of financial relief for businesses and individuals. Continue reading “CARES Act for Self-Directed Financial Investors: QRP, SDIRA, & Solo 401k”
eQRP® – a marketing term registered to Total Control Financial, LLC – QRP and Solo 401k generate excitement and interest within the self-directed investor community. From crypto-enthusiasts, gold & silver precious metals investors, and tax lien & deed buyers to real estate syndicators, QRP and Solo 401k, as an alternative to SDIRA, is creating incredible buzz. But, there appears to be extensive misunderstanding of QRP and Solo 401k
, so we’re providing an educational resource for self-directed investors.
For analysis, review, and FAQ about QRP, QRP-LLC, Solo QRP, Solo 401k, SDIRA, & Checkbook Control read on. Continue reading “EQRP® & QRP: What Are EQRP®, QRP, Solo 401k & SDIRA?”
401k-QRP & Solo 401k
contributions to a Checkbook-Control Qualified Retirement Plan – a Checkbook 401k-QRP – have multiple tax benefits: (1)
They are tax-deductible, reducing your taxable income & tax liability to the IRS and (2)
they grow tax-deferred, with no annual taxes on earnings and profits within the Solo 401k.
Tax-deductible QRP-401k & Solo 401(k) contributions consist of 2 components: (1) Employee Elective Deferrals and (2) Employer Non-Elective Contributions (profit sharing). However, you may have heard various other terms used to describe 401(k) Plan contribution types. Following is a comprehensive guide to Solo 401k contributions, terms, and calculations. Continue reading “QRP & Solo 401k Contributions: Understanding & Optimizing”
A Self-Directed Solo 401k With Checkbook Contro
l 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. Continue reading “Podcast: Solo 401k 2018 Year End Tax Strategy & FAQ”
A Self-Directed Solo 401k Plan With Checkbook Contro
l is a powerful tax and investment tool that can be used only by those with self-employment income and no full-time employees. It is a Qualified Retirement Plan
, or One-Participant 401(k) QRP
, covering a business owner with no employees, or that person and his or her spouse. These plans have the same rules and requirements as any other 401(k) QRP, but doesn’t need to perform nondiscrimination testing for the plan, since there are no employees who could have received disparate benefits. This exemption from non-discrimination testing empowers you to maximize the incredible strategies available to QRPs for your financial benefit. Following are common questions and answers regarding SoloK eligibility, benefits, and operations. Continue reading “Self-Directed Solo 401k Common Questions”