QUESTIONS: I just
learned about the Solo 401K option from my CPA. She recommended that I
look into switching my self-directed IRA into a Solo 401k plan using my
business (I am a sole proprietor) as a tool. Is this
possible? What are the restrictions? What are the advantages and
disadvantages to make this move? I currently own an apartment building
with my Self-directed IRA.
ANSWERS: Solo 401k plans are for the
self-employed, so if you are a sole proprietor and don't have any other businesses
that employee full-time employees other than yourself or business partner, you
can open a solo 401k and process an in-kind transfer of the IRA owned real
estate property to the solo 401k. The self-directed IRA custodian would report
the movement of the property to the solo 401k as as non-taxable direct
rollover.
Visit following link to learn more
about the IRA to solo 401k direct rollover rules.
We would assist you with completing and/or drafting the IRA
direct-rollover form.
To learn about the advantages and disadvantages of
transferring an IRA to a solo 401k, please visit following link.
Many thanks,
Amy in Houston Texas
