How to Avoid Taxes with Solo 401k - Discover How to Write Off $61,000 In 1 Simple Step

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2 жыл бұрын

In this video, I'm going to cover everything you need to know to avoid paying taxes with your Solo 401k.
✨Benefits of Solo 401(k) for one owner/spouse business.
✨How to create a Maximum Tax Deduction in one SIMPLE Step.
✨When & how to FUND Your SOLO 401(k).
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*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.

Пікірлер: 93

@borismusheyevcpa Жыл бұрын

Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know bit.ly/3DPw5UZ Schedule your FREE Tax Advisory Session: www.TaxPlanningCall.com

@normanstrater5751 Жыл бұрын

Wow ! Boris this one is big deal ,wish i had known this one years ago. THANK YOU

@tboneuncw 4 ай бұрын

Great breakdown!

@nancysmith9487 Ай бұрын

Mazel tov!! Very informative...

@SeanDIY Жыл бұрын

Very good!

@ventsislavfilipov6674 11 ай бұрын

Thanks! Nice video! What are some great low cost solo k plans ?? I have an S corp

@jennyl5246 Жыл бұрын

you have a video for a Roth Solo 401k? Is that a better option than just a solo 401k? How do you go about getting this setup a trust attorney?

@jimt3014 6 ай бұрын

Thanks for the video Boris. By deferring the $61,000 if you are a sole owner of an S corporation are you subjected to employment taxes of 15.3% (employer, employee Social security& medicare) before this gets deferred? If so would it make more sense to take a much smaller wage and take the rest in distributions?

@303Estates 5 ай бұрын

Great video!! You take a complicated subject and make it easy! Question. If you are in your 60's and you get a $1M lump sum, and you have no existing retirement account and you are self employed, how do you use a solo 401k? Thanks!!

@wei-ningsun5043 10 ай бұрын

Hey Boris, thank you for your informative video. Does it matter from which checking account the funds come from? As an example, if I wanted to contribute the max in a lump sum at the end of the year from my personal checking account, will that be an issue? Or does the employer contribution have to be from the business checking account? Thanks!

@scotttracy9333 7 ай бұрын

I don't think it matters

@pcos3607 4 ай бұрын

great video---- so when you do your taxes the next year... you can duduct your contributions ? up to 67k?

@shawnm.9320 Жыл бұрын

Great video. This was very helpful. I would love to see another video that goes into more information if you are the only employee (the amount you can invest goes off of your net profits). What this looks like? Can you be a 1099 employee or do you need an LLC?

@AmateurSuperFan 7 ай бұрын

7:43

@shanelvanjaarsveld2136 Жыл бұрын

HI, Ive found all your videos SO helpful and educational. THANK YOU. I JUST saw this video. Since its 1 Nov already, can I do a lump sum into my Single 401K or does it HAVE to come out per paycheck over the year?

@borismusheyevcpa Жыл бұрын

Thanks for the kind words! And yes you can lump sum one contribution to the 401k. As long as its done and posted before 12/31

@maryalex092761 Жыл бұрын

@@borismusheyevcpa you can also do a contribution as the "employer" after the end of the calendar, correct?

@perlaargyle9343 Жыл бұрын

If I’m buying a house under my solo401k but it has solar panels that I have to assume under my personal name /credit. How can I do that? Am I violating any regulations by doing that?

@Journey2Destinations 11 ай бұрын

Can I open a Solo 401(k) if I worked as a freelancer? If I worked for some company as a contractor and got 1099-misc with my SSN? Do I need to have an S Corp? I'm confused between Solo and SEP eligibility. Thank you!

@MrMmahesh007 2 ай бұрын

Nice explanation, can we have day job 401k and solo 401k employee or it’s only one contribution? Can we have both spouse and me as solo401k 66k?

@miketony8152 10 ай бұрын

Will that work with a Schedule C service business?

@sonjacurry6719 Жыл бұрын

Currently, I am having an solo 401k acct with the Insurance Company. Can I do self-direct? meaning I can manage the acct?

@mikeosta9844 11 ай бұрын

Are SE taxes calculated after company's 401k match? Can one deduct 25% of SE net income before calculating the 15.3%?

@niceguyschool Жыл бұрын

The best explanation I've found on the subject. Well done! I'm 62 and don't need any income from a new business, can I put the $20500 and the $6000 boost into Solo 401k without paying any salary? ie, is that portion exempt from the 25% of salary rule?

@borismusheyevcpa Жыл бұрын

You need a salary if u have an S Corp

@kevinedward4195 5 ай бұрын

My state taxes distrubution form simple ira's but NOT 401k's. I plan on working at the non-profit for many more years but I would like to begin rolling over the simple ira to roth. Can I do this via the solo 401k to avoid state taxes? I and 65 years old, and I have a simple IRA at my non-profit.

@user-dd5sh1bn7x 4 ай бұрын

How do you make payments is it through payroll does it have to show up on your w2?

@carlvena8183 Жыл бұрын

In self directed 401K.....I as employer or employee can put in contribution in a llump sum vs weekly or monthly?????

@EduardoSilva-xe3gp 4 ай бұрын

If the my scorp do the match of 25% of the salary or lees until the following year before tax season, that amount is tax deductible for last year or the year before the end of the tax season that tha contribution was made? Thank you

@LivinginHoustonTX-Adrian 9 ай бұрын

Any recommendations for company’s offering self-directed accounts for an S-Corp owner?

@belikeh2o965 7 ай бұрын

Does solo 401k works the same way for independent contractors (1099 employees) who does not have S Corp?

@ahmarkhan1919 Жыл бұрын

How do I write off Costco store trips as a business expense?

@maryalex092761 Жыл бұрын

Boris, my custodian for my solo 401K (Fidelity) says that I get no tax forms indicating the contribution made. Does that seem right to you? great video!

@borismusheyevcpa Жыл бұрын

You can still take the deduction !

@ginaforfsu Жыл бұрын

Can you clarify what you say at 7:45? Would it apply to my s-corp, where I don’t pay myself via W2 and fund the solo 401k with business revenue?

@borismusheyevcpa Жыл бұрын

Must have a w2

@WeBeatMedicare6969 Жыл бұрын

This is all so confusing…can a door dash driver contribute the “ employer” portion that you kept referring to?…I have 403b thru day job and have 30k max in salary deferral so I just need to know if I can use the 25% if earned income…I’m just a gig worker…not an S corp or LLC or whatever

@Bioandroid2023 6 ай бұрын

It’s it too late to do anything for 2023? I thought I heard you have until April 15th ‘24 to make contributions?

@virajmalik 3 ай бұрын

I have an LLC that is not making any profit, I file schedule C each year. Can I still contribute to solo 401 from post tax money from my day job?

@zhendizhou1821 4 ай бұрын

What if I'm the owner of an LLC, and the company has no profit. Does that mean the company cannot make any profit sharing? How I can maximize the contribution?

@futurefomo2828 Жыл бұрын

Hi. Great video. 2 questions. I put in my application for the solo 401k with TD ameritrade for a free account, Do you think TD ameritrade is a good solo 401k account?. For the $20500 employee contribution, can I contribute the entire $20500 before Dec 31st?. Or can I only do a monthly contribution in my Dec payroll (since its almost end of year) of $20500/12 = $1708.33 ??

@susie2251 Жыл бұрын

It’s fine but you can’t borrow money from your TD 401k if you need to access a loan in future. Some others allow it, like Fidelity.

@1robmal 9 ай бұрын

Does this work for an LLC? or does it have to be an Inc?

@maximilian333 Жыл бұрын

What if I work a 9-5 corporate job and my business isn’t making enough money

@kurthenry2564 6 ай бұрын

Hello Boris, Great video! My question is - I work a W2 job full time and part time for my wife's sole proprietorship. I take full advantage of my W2 company 401K (30K) and we have a Solo 401K for my wife. She is able to take the $61K contribution as we've done in past years, but I've not taken out any contribution. Is it possible that I can take a contribution and company match for my participation in the company even though I'm also contributing to my W2 company?

@RedBarnFinancialTV Жыл бұрын

Good stuff. Personally, I think real estate in a 401(k) is creating a tax inefficiency. You turn capital gain into ordinary income and appreciated real estate is difficult (though not impossible) to get out of an IRA. All the income earned is ordinary income as well.

@thenonstopdreamer Жыл бұрын

I would love to understand more of this. Is there any content of pros or cons of investing in real estate with a solo 401k?

@RedBarnFinancialTV Жыл бұрын

@@thenonstopdreamer I generally think it's a bad idea to invest in real estate in a retirement account. You take a capital gain asset (tax favorable) and turn it into ordinary income (higher taxes). You also lose the ability to write off depreciation and a multitude of other benefits of real estate evaporate inside a retirement account.

@robwithrbk 7 ай бұрын

Great input. Just some thoughts, if you're making any kind of real money, your capital gains, at least for me in CA is going to be in the 35% realm (25% fed and 10% state)...that's pretty close to ordinary income tax rate. Also, for self directed, something I'm considering, I would not own my apartments in it for all the reasons you mention. But...but, I flip about 4 small deals a year. I take no deprecation on those. I don't even need the income on a few of them a year. I'm thinking about using a self directed IRA to invest in these flips. Then down the road when I'm looking to retire, I'd probably just lend the money out anyway sitting in my IRA. There are some nuances with owning real estate in a self directed, but some could go inside of one. But not all.

@LogansLegoLife Жыл бұрын

Hi, great video! I’m a contractor. I have not formed any LLC or S Corp because I don’t think I make that much to justify it yet. I opened a Solo 401k account on ETrade in 2021 and I just put money in there from my checking account. I filed my taxes yesterday and my tax guy said I need to send myself a W2 in order to contribute towards the Solo 401k??!! Is that true? I contributed to only the ROTH 401k account for 2022. Do I need to include this info on my tax returns?

@sheeesh7722 8 ай бұрын

Is it true

@harrywayland8390 Жыл бұрын

For the company part, are there rules about how the contribution should be done? Can I just transfer money from business bank amount to my private bank account and then deposit to the solo 401k account?

@borismusheyevcpa Жыл бұрын

There are no rules u can but why do that, just pay directly from the business

@blackhouse7646 4 ай бұрын

How do you pay yourself when you are solo llc?

@samuelperes5608 Жыл бұрын

do you have a video that goes over the same topics but with a safe harbor 401k plan with employees?

@borismusheyevcpa Жыл бұрын

Hey Samuel. We don't yet. Are you looking to learn from the POV of an employee or the POV of an employer?

@helloleona Жыл бұрын

For the $20,500 - can it be deposited as lump sum in the solo 401k? Or it has to be transferred to solo 401k immediately after check is received?

@borismusheyevcpa Жыл бұрын

Either it is fine!

@ericcarlos8930 7 ай бұрын

I contributed $25k to my SEP, but now I started a Solo 401k, how much can I contribute ?

@luxuryhotelroomtours6687 10 ай бұрын

What counts as salary for the 20% part as a sole proprietor? Does the 20,500 get deducted off salary and the x 20% of that?

@headlibrarian1996 6 ай бұрын

The profit sharing contribution is not reduced by salary deferrals.

@TexarkanaPrepper Жыл бұрын

Are you sure that you have to put the 20500 before the end of the year. My CPA said that I can do it by April 15th?

@borismusheyevcpa Жыл бұрын

To be in compliance yes before before 12/31 but employees portion u can do before filing of tax return

@mike2959 5 ай бұрын

Self directed a bit more complicated. For example if you have 500k in your self dir 401k you can just take it a buy real estate. You must have a separate entity LLC for this 401k as the controlling member. Separate bank acts, separate everything.

@DaisyChen 6 ай бұрын

Does it mean we can use 401k to buy a house as our primary residence? I remember I heard we could only borrow against 50k from our retirement fund to buy a house. So this is a better way?

@bluedev1495 5 ай бұрын

You can take a loan on it but you can also just take it out penalty free for a first time home purchase

@user-rk9ln8pl4b Ай бұрын

How about 1099 employee considering fedelity

@rja8318 7 ай бұрын

Can the contribution to the 401k come from the distribution? Or does it have to come from the w2 salary

@headlibrarian1996 6 ай бұрын

S-corporation I take it? The deferral must come from salary via payroll deduction. Your after-tax contribution, if any, can come from anywhere. Profit-sharing contributions obviously come from the corporate bank account outside of payroll.

@jamesseward9263 4 ай бұрын

Can I have a solo 401k without having a side business?

@headlibrarian1996 6 ай бұрын

This video appears to imply that your max contribution doesn’t change when you are eligible for catch up contributions, which isn’t true. A catch up contribution is in addition to your annual maximum. In fact, I’m quite sure that if your salary equals the max you can still add your catch up on top.

@erniedecarlo6882 5 ай бұрын

The $6500 catch up contribution is on the board in 2 places. Total$ 67,500.

@tradesmenlife 6 ай бұрын

47500 under 50 is the cap annually from fidelity

@davidkaptein7602 2 жыл бұрын

Is an LLC partnership w wife using 25% of salary or net profits?

@jadely5243 Жыл бұрын

Is Solo 401k same as individual 401k? As solo LLC, which contribution I should make it before 12/31? Employee or employer?

@perlaargyle9343 Жыл бұрын

Do you know if you could buy a property with a solo401k with an agreement for sale?

@borismusheyevcpa Жыл бұрын

Yes u can buy a property with Solo 401k but it’s not that simple, u need to consult with a professional to do that, thanjs

@pattattack1 Жыл бұрын

Does the Employer Contribution to a Solo 401k get entered on Schedule C (1040) (Solo Proprietorship) Line 19 (under expenses)?

@borismusheyevcpa 11 ай бұрын

No, on a 1040

@pattattack1 11 ай бұрын

@@borismusheyevcpa Thank you Boris.

@TysonPlus Жыл бұрын

I don’t pay myself a salary. I simply take money from my profits. Am I doing it all wrong ?

@cadiehl1 10 ай бұрын

Yes

@scotttracy9333 7 ай бұрын

That's why Boris says hire a tax planner

@headlibrarian1996 6 ай бұрын

No if schedule C, yes if corporate.

@pkhosla4994 Жыл бұрын

I own sub S company and I am the only salary .How is 401k seperate to 401K as I can mtch upto 25% on my salary in both

@borismusheyevcpa Жыл бұрын

did you mean 401k vs SEP? the difference between Solo 401k and SEP is that they will be able to contribute more to a Solo 401k as it's not just the match of 25% of salary but could also deferred up to $20,500 from pay checks to 401k account.

@RealShaktimaan Жыл бұрын

I have an LLC and a file as S Corp. I paid myself 20k already and I was planning to contribute this to a solo 401k. It was not deferred. Would I still be able to contribute this amount to solo 401k and take deductions?