Ira | Solo 401k Unlimited® Investing

How To Get Help

April 5, 2011 By Jeff Nabers 1 Comment

Positive Change

[Originally posted at JeffNabers.com]

Cliff notes version:

I will be offering free one-on-one phone consulting to qualified people
In order to make room for that, I will no longer be offering free consulting in the form of blog comment responses

Here’s the skinny >>>

I’m making some changes to how I focus my energy and how I am able to help you with your wealth preservation and wealth building, both inside a Self-Directed IRA LLC or Solo 401(k) and outside of retirement funds.

Here’s what these changes will do for you:

If you are aimed down a path that is likely to succeed, we may get a chance to work together more intimately
If you are aimed down a path that is likely to destroy your wealth and frustrate you, you won’t get my help

Let me explain…

The #1 biggest factor making an impact your wealth right now is inflation.

Some people are trying to “beat” inflation by taking bigger risks to hopefully get bigger returns that will be bigger than inflation.

For 95% of my readers, that won’t work. It won’t work because bigger risks increase the gains and the losses, and over the long term most people will have worse performance as a result of taking bigger risks.

Around 5% of my readers have maybe figured out how to get bigger returns by spending more energy on some sort of system or process that yields larger returns. Moving forward, I don’t think that will continue working either.

Why won’t aggressive investment strategies work in the future?

Well… they will work and they won’t work. They will work in terms of turning your dollars into more dollars. They won’t work in terms or actual value adjusted for inflation.

This is because there is no limit to [Read more...]

Filed Under: Blog Tagged With: 401k, depression, economy, fed, hyper-inflation, hyperinflation, inflation, invest, investing, investment, investments, ira, ira llc, offshore, recession, self directed, self directed ira, self directed solo 401k, solo, solo 401k

A Major Improvement To Make Things Easier

November 11, 2010 By Jeff Nabers 4 Comments

Exciting news – we’ve just started implementing something that makes setting up a Solo 401(k) a much faster and easier process.

Now you can download a small piece of software that turns your computer into a portal for setting up your new Solo 401(k) in minutes.

Faster Creation

You can literally bring your Solo 401(k) plan into existence the same day that you get the software. You don’t have to be full-time self employed to qualify either; self-employment activity on the side of full-time employment elsewhere still qualifies you for the Solo 401(k).

Easier Transactions & Maintenance

It also makes certain tasks easier beyond setting up and funding the plan with rollovers. For instance, if you ever need to draw on the participant loan feature that lets you borrow up to $50,000 tax-free from your retirement funds, you can just fire up the software and get the loan funds (up to $50,000) in your hands on the same day.

Making contributions has never been easier. Use the software to instantly calculate your maximum legal contribution (up to $54,00) each year. Double that if your spouse is involved in your self-employment activity because she (or he) can contribute up to the same limits as well.

Clearer Benefit

There’s even a value calculator that shows you how much your 401k plan is measurably benefiting you. Most people find it’s in the tens or hundreds of thousands of dollars per year.

Total Control

And, of course, enjoying the power of controlling the checkbook for your own 401k investments comes with unlimited, legally-allowable possibilities… such as investing in:

Private businesses equity
Non-dollar, safe offshore investments
Private lending
Real estate
Tax liens
Virtually anything else (just no “self-dealing” or conflict-of-interest transactions)

After thousands of private trials gone smoothly and plenty of early adoption switch-over from our existing loyal clients, we’ll be doing a big promotion to celebrate making this available for new clients.

If you’re on my email list, you’ll be the first to get access.
[You can can join it if you haven't already]

Thanks for all your support, and everyone here at Nabers Group is ecstatic about unveiling our latest way to give back to the community!

Filed Under: Blog, Setting up a Solo 401k, Solo 401k Compliance, Solo 401k Contributions, Solo 401k Eligibility, Solo 401k Investment Options & Ideas, Solo 401k Maintenance, Solo 401k Participant Loans, Starting a Business Tagged With: asset, assets, choices, economy, entrepreneur, funding, funds, individual 401k, individual k, inflation, investing, investment, investments, ira, ira llc, loan, offshore, options, protection, recession, retirement account, retirement funds, safety, secure, self directed, self directed ira, self directed ira llc, small business, solo 401k, solo k

Solo 401k provides checkbook control without a custodian or LLC

June 18, 2010 By Jeff Nabers 17 Comments

With tens of thousands of self directed IRA investors utilizing LLC structures to enjoy “checkbook control” authority of their self directed IRA investments, this post may serve as great news for those who aim to follow suit.

Solo 401(k) retirement plans can grant direct checkbook control without the use of an LLC or custodian.

The concept of custodian comes from Internal Revenue Code Section 408(a)(2) and is defined in Section 408(n). This entire IRC section 408 is devoted to Individual Retirement Accounts, or IRAs. The code basically explains that an IRA is normally a trust, and the trustee must be a bank. It then defines bank as a bank, trust company, or any company specifically approved by the IRS. This capacity of trustee to an IRA is known as “custodian”. This trustee role is simply that of investing the plan as directed by the accountholder.

A Solo 401(k) plan is a type of 401(k) that is designed for self employed individuals whose businesses have no full time employees. All 401(k) plans are qualified plans, and qualified plans do not have any special restrictions on who can serve as trustee.

So the significant difference is that with a Solo 401(k), the participant can actually be the trustee and handle [Read more...]

Filed Under: Blog, Setting up a Solo 401k, Solo 401k Compliance Tagged With: 401k, accountholder, administrator, assets, checkbook control, custodian, invest, investing, investment, ira, legal, participant, reporting, self directed, solo, solo 401k, title, titling, trustee

Open a Solo 401k for 2009 before it’s too late!

November 13, 2009 By Jeff Nabers 2 Comments

If you’re looking for a tax break this year, there’s still time to open a Solo 401(K). But do your research and seek experts to help you understand the plan, how to manage your account without the need for a custodian which amounts to extra fees, and how to transfer your existing new plan. You’ll find the options for investing and maximizing your contributions are plentiful but the clock’s ticking—you only have until December 31st to open one for 2009.

Filed Under: Blog, Setting up a Solo 401k Tagged With: 401k, advice, advisor, alternative investment, contribution, eligibility, government, individual 401k, individual k, invest, investing, investment, ira, one person k, planning, retirement, retirement plan, savings, self directed, self employed, self employment, solo, solo 401k, solo k, strategies, strategy, tax, uni k, unlimited

Where to find a nonrecourse loan for a Self Directed Solo 401(k)

March 23, 2009 By Jeff Nabers 7 Comments

For many real estate investors, leverage is a key factor to their plans for profits – leverage in the form of mortgage financing. When you introduce mortgage financing into Self Directed IRA ownership of real estate, a special tax called Unrelated Business Income Tax (UBIT) is triggered. The tax often isn’t detrimental as will be covered in another post, but nonetheless it reduces the profit.

For the self employed, a fantastic development has occurred over the past few years – the Solo 401(k). One distinct advantage of the Solo 401(k) over an IRA is that it is not subject to paying UBIT on profits from financed real estate. Eliminating UBIT by using a Solo 401(k) eliminates the need to file a return (Form 990-T) as well as the accompanying tax. Sound pretty good so far?

The difficulty in recent times has been obtaining nonrecourse financing. The leader of NR financing in the Self Directed IRA industry for the past few years has been North American Savings Bank. Last year, they took the familiarity of IRA lending and applied it to Solo 401(k). Unfortunately for many Solo(k) investors, this has only been available to plans who choose to name a custodian as trustee of the plan. Qualified plans (which is what all 401k plans are) are different than IRAs in that they are not required by law to [Read more...]

Filed Under: Blog, Solo 401k Compliance, Solo 401k Investment Options & Ideas, UBIT/UBTI/UDFI Taxes Tagged With: 401k, 990-T, financing, investment, ira, lending, loans, mortgage, nasb, nonrecourse, north american savings bank, profit, property, real estate, solo, tax, taxable, UBIT, unlimited retirement account, unrelated business income, URA radio

How to borrow money from your Solo 401(k)

March 2, 2009 By Jeff Nabers 10 Comments

Solo 401(k)’s most touted feature is its uniquely large annual contribution limits ($49k – $108k). A lesser known feature may be just as useful for some: participant loans.

What is a participant loan?

A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value with the following terms:

To be repaid over an amortization schedule of 5 years or less
Regular payments no less frequently than quarterly
At a reasonable rate of interest… generally interpreted as prime rate + 1%

Such a loan may only be made in accordance with the Solo 401(k) plan documents. While most plan documents disallow this type of loan, the Unlimited® 401k offered by my company does allow it.

Under what conditions is this allowed?

Any. As long as the plan documents allow for it & the proper loan documents are prepared and executed, a participant loan can be made for any reason.

When is this useful?

This can be useful when [Read more...]

Filed Under: Blog, Solo 401k Participant Loans Tagged With: 401k, investment, ira, loan, participant, property, real estate, self directed, solo, solo 401k

Unrelated Business Income Tax – UBIT for Solo 401(k) & IRA accounts

February 19, 2009 By Jeff Nabers 6 Comments

If you talk to the average CPA, he’ll tell you that UBIT is the boogeyman and is to be avoided… always. Discussing this topic with an above average CPA (such as Eric Wikstrom of Integrated Wealth Strategies) yields different advice.

The Two Types of UBIT

Triggered from a trade or business – if a tax exempt entity (such as an IRA or 401k) owns a trade or business, the income of that business is taxed at trust rates (i.e. very high tax rates). Both IRA & Solo 401k accounts are subject to this type of UBIT.
Triggered from ownership of leveraged real estate – if a tax exempt entity (including IRA) owns real estate leveraged with a mortgage loan, the portion of that income attributable to the mortgage loan is taxed at trust rates. This type of UBIT is specifically referred to as UDFI – Unrelated Debt Financed Income. Solo 401k accounts & other qualified plans are exempt from UDFI.

Trust tax rates are very high, so it might make sense to avoid Type 1 UBIT at all costs. On the other hand, a close examination of UDFI tends to revoke its “boogeyman” status.

The reason UDFI isn’t a detrimental cost is that non-recourse mortgage loans (the only type an IRA/401k can legally obtain) are typically only offered at a 65% loan-to-value maximum. So this means that the UDFI tax is only payable on up to 65% of the property’s net income. (That’s right – net income. You do get to deduct depreciation and other expenses before paying UDFI tax).

Let’s examine a simple comparison of the taxes payable on net real estate income with 50% leverage: [Read more...]

Filed Under: Blog, UBIT/UBTI/UDFI Taxes Tagged With: 401k, ira, leverage, mortgage, real estate, self directed, tax, taxation, taxes, UBIT, UBTI, UDFI, unrelated business income tax, unrelated business taxable income, unrelated debt financed income

Free Self-Directed Solo 401k!!!

February 16, 2009 By Jeff Nabers 16 Comments

You heard it right: a FREE Solo 401k from Nabers Group. This is a contest, and you have a good chance of winning. I estimate that 98% of my readers will not even try to win. It’s a phenomenon: people think “Oh too many others will enter the contest and my odds won’t be good” and that leaves you will excellent odds if you enter the contest. Here’s what you have to do:

Be eligible for a Solo 401k in the first place. This means that you have to have self employment activity (such as Schedule C income on your 1040 or own a business), and you have to have no employees at any businesses in which you or your spouse have significant ownership. (An “employee” is somebody who works over 1000 hours per year for your business and receives a W-2).
Add me on Facebook. Go to my Facebook profile to add me to your friends. If you don’t have a Facebook account, just create one. It’s very simple and easy, and it will help you stay connected for updates, news, events, etc.
Write a brief explanation of the most powerful business or investment opportunities in our current recession. Explain the “how” and the “why” as much as you can, but be direct and to the point at the same time. Submit it in a comment on this blog post (the one you’re currently reading) OR post it to the “wall” at the bottom of the Facebook Solo 401k Contest page. I’ll review all entries, and the person with the best idea will get a Solo 401k setup for them by Nabers Group with the entire establishment fee waived.

Submission Deadline: March 15, 2009

Value: $210,585

The math: Over the past 10 years, most stock indexes have produced a return of approximately 0%. With a Self-Directed Solo 401(k) plan, the accountholder can buy real estate, gold, stock in private companies, and loan money to individuals or corporations. Surveys have shown us that over 80% of our Solo 401(k) clients have a target return of investment of 12% per year or more. An investor with $100,000 of existing funds who earns 12% per year for 10 years will generate a profit of $210,585.

We’ve never done this before, and I don’t know if we will ever do this again. Now’s your chance – start working on your entry today!

* The value is based on the potential profit you could earn and will vary based on your investment decisions. With a Self-Directed Solo 401(k), it’s up to you to find and choose investments, and only you will decide how profitable and valuable this investment vehicle will be.

We’ve never done this before, and I don’t know if we will ever do this again. Now’s your chance – start working on your entry today!

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Filed Under: Blog, Setting up a Solo 401k, Starting a Business Tagged With: chongchua, discount, free, gold, invest, investing, investment, ira, ira llc, nabers, precious metal, price, real estate, self directed, solo, solo 401k, solo k, unlimited

Weak economy strengthens the incentive for a Solo 401k

February 10, 2009 By Jeff Nabers 1 Comment

This is quite a simple concept so this post will be very brief.

Our weak economy has brought very high inflation: as high as 13% over the past year.
Future dollars are worth much less than dollars today.
With a Solo 401k you can make tax-deductible contributions to your retirement plan in today’s dollars and pay taxes later in less valuable dollars.
Successful entrepreneurs and self employed individuals can contribute $49,000 per year or more to their Solo 401k in 2009.

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Filed Under: Blog, Solo 401k Investment Options & Ideas Tagged With: 401k, dollar, economy, inflation, invest, investing, ira, meltdown, profit, real estate, self directed, solo, solo 401k, wealth

Video: Self Directed Solo 401k

January 27, 2009 By Jeff Nabers 2 Comments

I recently sat down with Eric Wikstrom – CPA, CFP, & Founder of Integrated Wealth Strategies.

In this segment we briefly discuss the Solo 401k and how it differs from a Self Directed IRA.

The following clip observes the benefits of unrestricted investment choices. [Read more...]

Filed Under: Blog, Solo 401k Investment Options & Ideas Tagged With: account, contribution, custodian, invest, investing, ira, limits, loan, plan, reale state, retirement, self directed, solo 401k