I'm Mat Sorensen here with my law partner Mark Kohler ready to talk to you about
how to maintain your solo 401k now this is an important topic I want to commend
you for watching the video oh I got to maintain this thing I know you wanted to
avoid this video no listen to this there's a there's a lot of critics out
there that don't like what we're doing setting up solo or Oh in case for self
directing because they argue we're giving really a loaded handgun to a
child that's the equivalent because this financial instrument of 401 K is
dangerous you can screw it up and if you've got to have some maintenance to
to really protect yourself from problems with the IRS yeah and to us it's a
really valuable tool just gotta know how to take care of it you know you polish
the gun everybody you know say no more I'm gonna run this analogy but you know
we're saying okay take care of it alright and let's hit a couple things we
want to make sure you do first you gotta have an accounting of it you
got to have some records of what the heck's going on in it did I put money in
it did I take money out of it what investments do I have okay you don't
have a folder with a bunch of crap you've put in it all right you need an
accounting of that that's what directed IRA does for you with our solo 401 k's
you have a count log in we get quarterly statements we update your account from
the information you provide us now that information you're gonna provide really
comes from a checkbook this is what we want everybody to do and they get their
401 k package is go down to the bank and set up a checkbook which if you're on a
DIY plan setting up your 401 K you can go down to the bank and run into some
roadblocks because you're not sure what to say you might want to take a tent and
sleeping bag cuz you're gonna be there for a while yeah with with our work full
support 401 K set up we're gonna help walk you through some techniques to help
get through the banking process you got to have a checkbook yeah and that
checkbook is going to be the foundation of your record-keeping to document what
you put in what you take out and give that to our a more directed IRA
maintenance plan it's like 300 bucks a year very affordable and they're gonna
help give you the reports and online access anytime you know it's there ya
know number two make sure you don't screw it up by committing a prohibited
transaction do you know the primitive transaction
are you transacting with yourself or certain family members who are
prohibited to the account we want to make sure you understand those rules
because that is where you could really cause a problem for your retirement
account penalties possible excise taxes yeah yeah and when you set up a 401k you
should be getting from your provider whoever helped you what we give our
clients as a binder lots of reading material some extra videos and that
consultation when they need it and if you didn't set up your 401k with us it's
okay call our tax lawyers just all a card us for 20 minutes here a half hour
there maybe once a year have a little planning session to talk about what
you're doing in your 401k so you don't step on a landmine yeah now one other
key thing if you got over 250 thousand of assets in the solo 401k tax return
you have to file what's called a 5500 easy for the solo 401k if you're under
that there's no tax reporting for the solo 401k itself you may be reporting
your contributions or have some tax reporting stuff you got to take care of
if you're rolling over transferring funds into it but the plan itself does
not have to file its own tax return until you're at 250 thousand of assets
I'm gonna throw one last you know problem and that is if you have multiple
accounts within the 401k say your spouse is contributed say you've got kids
involved say you have Roth pieces in traditional pieces think of the 401k
like a honeycomb and you've got all these little accounts within the 401k
you gotta track as well so you can see where a good little accounting support
system would be important about that service check down below but in other
videos on this where we talk about the Roth 401k peas so lots of lots of things
lots of opportunity but it comes with some responsibilities yeah and there's a
lot of detail on the plan binder of our 401ks on how to track that how to count
for what the rules are of course my chapter in my book the self-directed IRA
handbook has a whole chapter I can't leave I knew he'd plug his back I knew
he'd plug his book in this video so there's just if there was a but a better
book I would tell you okay that's true so get over to self-directed IRA
handbook calm SPT IRA handbook calm that's where you get a copy amounts but
second edition mind you so it's pretty good I'm being book shamed right now
I have a chapter on this in my book as well but apparently it's not as good as
who but try no anyway lots of fun here we hope you
are enjoying your 401 K ride just buckle up all the rules keep your hands and
arms in there all times and you're going to love the right thanks so much for
watching that video and I want to be your source for tax and legal strategies
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