The Backdoor 401k and Real Estate | Mark J Kohler

The Backdoor 401k and Real Estate | Mark J Kohler


Mark Kohler here tax lawyer specializing in small business tax strategies here with my amazing law partner, Matt Sorenson Yeah, and today we’re gonna be talking about the backdoor solo 401k We’ve cleaned the sprays. Yeah, this is a big deal. We’ve got a cool strategy. I think you’re gonna love what’s the problem? What the problem is there’s a lot of real estate investors out there who have rental properties that wanna do a solo 401k But they’re not technically Self-employed for solo 401k. Rules. What does that mean? that means they cannot directly establish the solo 401k as a rental property owner or in their LLC that owns rental property, but We have a solution and I’ve been drawn look at this, you know, just happening while you’re talking I love this if you’ve watched some of our videos or been to our workshops, we like to divide clients lives into two sides We’ve got assets over here operations over here well to have this 401k Solo 401k which we love for our small business owners. You’ve got to have an operational business to fund it So if you’re over here and you’re like well, I don’t have a business I have a day job, but I’m investing in all these rentals and I’ve got my little LLC’s over here and man I’m out there rocking with rental income. I can’t get to a 401k with rental income Yeah, it’s a bum deal really it’s a bum deal But there’s a way there’s a way here’s the backdoor strategy set up this sister company as a management company to Manage your rental properties now, we would never do this. This this is a bad deal and there’s some companies out there We don’t appreciate the sly strategy which we think is almost a scam to make this a c-corp and heaven forbid in nevada Doesn’t need to be that crazy. It can be a simple LLC or S corporation We’re gonna help you decide which entity is best, but it’s a management company for your own rentals which you would never do because it doesn’t make tax sense unless You want to do a sole? Okay. Yep. So we’ve got the rental income over here Okay, you’re gonna pay and come over there to your the management fee income now I’ve got Operational business ordinary income now. I’m self-employed Now I can create a solo 401k and the tricky areas You can’t take a w-2 from your own LLC. You are a passive Manager of your LLC’s in creating tax losses and all the beauties that come with rental real estate but if you do want to fund a 401k or rollover old IRA or old 401k money you need this structure and to get this structure that W-2 has to be a part of the equation problem solve problems on the backdoor 401k anything you want to add my dear friend? Well, of course Make sure you check out all the other videos on how you contribute to the solo 401k how to properly maintain it how to serve that properly There’s so much more to learn but for those of you stuck you’ve got rental properties You’ve wanted to self-direct you’ve heard about the soul. Okay, you wanted to get it. Someone told you you couldn’t consider this as an option See you around Thanks so much for watching that video and I want to be your source for tax and legal strategies It’s hard enough to live the American dream without being out on the web on Google trying to find answers to complex Questions and just clicking a mouse hoping you got it, right My team and I want to be a huge resource to you the law firm accounting firm by Education resources on my site. Please continue to follow these strategies I know the saved thousands now click here if you want to be a part of my newsletter It’s awesome weekly updates and deadlines and strategies and tips also subscribe to my youtube channel You’ll love it and make sure to click the bell icon So you get a little ping whenever Thursday? Video and finally, check out my site at Marco Polo calm with all sorts of videos Probably 70 plus videos 30 plus hours of content that’ll save you thousands

4 thoughts on “The Backdoor 401k and Real Estate | Mark J Kohler

  1. Awesome Video. Keep The Content Coming. Liked Video 🙂

  2. Great strategy. Quick question, is there a minimum payment that need to be made to management company in order to make operational? Or should all rental income go to the management company.
    Thank you!

  3. B.O.S.S. love Mark Kohler strategies

  4. Yeah but you will have to pay social security tax with this method

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