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Setting up a solo401K: accountant says I should seek retirement planning advisor ins

Home Retirement Accounts Setting up a solo401K: accountant says I should seek retirement planning advisor ins

  • Avatar jacoavlu 
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    Status: Physician, Small Business Owner
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    Joined: 03/01/2018
    Splash Refinancing Bonus

    How much S Corp salary are you paid? And how much in distributions?

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #237850 Reply
    Avatar ChicSkiier 
    Participant
    Status: Physician
    Posts: 14
    Joined: 06/24/2019

    Haven’t set up payroll for myself-edited.

    Trying to set up meeting with CPA this month.

     

     

    #237853 Reply
    Avatar jacoavlu 
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    Status: Physician, Small Business Owner
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    Joined: 03/01/2018

    Last year as in 2018?

    is 1099 income paid to you personally, or issued to the Corp?

    If issued to the Corp, where is it going?

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #237854 Reply
    Avatar ChicSkiier 
    Participant
    Status: Physician
    Posts: 14
    Joined: 06/24/2019

    Started job July 2018.
    Paid to Business account

    #237857 Reply
    Avatar Tim 
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    Status: Accountant
    Posts: 2858
    Joined: 09/18/2018
    coffee

    Click to expand…

    Drink some coffee yourself. Your CPA may not have the knowledge or have many in the practice of tax planning and design you are looking for and need.

    I don’t know if I agree with that. First, they knew enough to say they didn’t have the knowledge. That is far better than some CPAs we have seen cause serious problems. Second, the advice itself is not a bad idea for most CPA clients.

    Click to expand…

    He/she may be perfectly capable of providing tax return services at a reasonable price. The practice may be mostly write-up and filing small business local, state and federal returns. Not financial and tax planning. You don’t want to pay for your CPA to research this.

    You do need to seek advice from a reliable tax professional on the structure and best future path. Your question was about I401k, it is clear you need some answers from a CPA that handles these routinely.

    #237858 Reply
    Liked by ChicSkiier
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2282
    Joined: 03/01/2018

    Started job July 2018.
    Paid to Business account

    Click to expand…

    So did the Corp complete a 2018 tax return? Did someone prepare a K-1 for you?

    is all the money still just sitting in the business account?

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #237860 Reply
    Liked by childay
    Avatar HumbleInvestor 
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    Status: Physician, Small Business Owner
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    Joined: 12/28/2016
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    @jacoavlu raises an imp question. If you did not file your 1120s, you still have time to file it but I hope you filed for an extension. Did you take any salary from the scorp? Did you file your 941, 940 etc filings.

    #237863 Reply
    Avatar saildawg 
    Participant
    Status: Physician
    Posts: 330
    Joined: 01/24/2016

    Here is all my research into the subject, you have to be knowledgeable and diligent, but certainly it can be done

    https://www.whitecoatinvestor.com/forums/topic/research-into-solo-401k-with-intent-for-mega-backdoor-roth/#new-reply-207943

    #238308 Reply
    Avatar jacoavlu 
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    Status: Physician, Small Business Owner
    Posts: 2282
    Joined: 03/01/2018

    ^^^ OP needs to sort out S corp issue and likely dissolve the corp, get things cleaned up, set up as sole prop for 1099 income, before worrying about 401k

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #238311 Reply
    Liked by childay
    Avatar saildawg 
    Participant
    Status: Physician
    Posts: 330
    Joined: 01/24/2016

    ^^^ OP needs to sort out S corp issue and likely dissolve the corp, get things cleaned up, set up as sole prop for 1099 income, before worrying about 401k

    Click to expand…

    That is true, sorry good point.  I only read initial post which had no mention of S corp

    #238316 Reply
    Avatar ChicSkiier 
    Participant
    Status: Physician
    Posts: 14
    Joined: 06/24/2019

     

    Started job July 2018.
    Paid to Business account

    Click to expand…

    So did the Corp complete a 2018 tax return? Did someone prepare a K-1 for you?

    is all the money still just sitting in the business account?

    Click to expand…

    Sorry for the delay in response, yes my accountant did prepare a 2018 tax return including K1 for the S-corp

    #238491 Reply
    Avatar Steven Podnos MD CFP 
    Participant
    Status: Physician, Financial Advisor
    Posts: 167
    Joined: 09/21/2017

    We have found that most accountants want nothing to do with SE 401k plans-they know their clients are taking deductions for them, but don’t want to do the 5500EZ forms or be involved in any other way.

    #238502 Reply
    Liked by ChicSkiier
    Avatar ChicSkiier 
    Participant
    Status: Physician
    Posts: 14
    Joined: 06/24/2019
    coffee 

    Click to expand…

    Drink some coffee yourself. Your CPA may not have the knowledge or have many in the practice of tax planning and design you are looking for and need.

    I don’t know if I agree with that. First, they knew enough to say they didn’t have the knowledge. That is far better than some CPAs we have seen cause serious problems. Second, the advice itself is not a bad idea for most CPA clients. 

    Click to expand…

    He/she may be perfectly capable of providing tax return services at a reasonable price. The practice may be mostly write-up and filing small business local, state and federal returns. Not financial and tax planning. You don’t want to pay for your CPA to research this.

    You do need to seek advice from a reliable tax professional on the structure and best future path. Your question was about I401k, it is clear you need some answers from a CPA that handles these routinely.

    Click to expand…

    Thanks.  I am looking into another CPA-any suggestions for the LA area are welcome.

    #238508 Reply
    Avatar ChicSkiier 
    Participant
    Status: Physician
    Posts: 14
    Joined: 06/24/2019

    We have found that most accountants want nothing to do with SE 401k plans-they know their clients are taking deductions for them, but don’t want to do the 5500EZ forms or be involved in any other way.

    Click to expand…

    Didn’t realize this until I got feedback from my CPA recently.I am looking into another CPA-any suggestions for the LA area are welcome.

    #238509 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2282
    Joined: 03/01/2018

     

    Started job July 2018.
    Paid to Business account

    Click to expand…

    So did the Corp complete a 2018 tax return? Did someone prepare a K-1 for you?

    is all the money still just sitting in the business account?

    Click to expand…

    Sorry for the delay in response, yes my accountant did prepare a 2018 tax return including K1 for the S-corp

    Click to expand…

    Ok so how much Corp income, how much salary, how much distributions?

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #238526 Reply

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