IWS Newsletter No. II • Summer 2010
Eric Wikstrom's
Retirement & Wealth Planning Advisor
WHAT'S INSIDE
The Solo 401(k) -
Learn why the Solo 401(k) is THE best retirement account for self-employed individuals
Roth conversions -
What's the big deal with 2010? Your IRA will thank you when you find out
Calendar concern
Solo 401k: Form 5500-EZ
Solo 401k plans must file the IRS Form 5500-EZ (Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan) by July 31 (because the 31st falls on a Saturday this year, you actually have until Monday, August 2nd). But... you do not need to file the Form 5500-EZ if the total of the 401k's plan assets as of 12/31/2009 do not exceed $250,000, unless 2009 is the final year of the plan.
Also, for plans that were formed in 2010, no Form 5500-EZ would need to be filed until 7/31/2011 for the plan year ended 12/31/2010.
Even though the Form 5500-EZ is an information return and not a tax return, it is an important document that needs to be dealt with. The IRS imposes a penalty of $25 a day for not filing returns in connection with profit-sharing plans by the required due date.
So..if your Solo 401k plan was established in 2009 (or earlier) and it had $250,000 in plan assets as of 12/31/2009, you've got a filing obligation coming up soon. Feel free to call me and I'll be happy to assist you with this filing.
The Solo 401(k) -
Learn why the Solo 401(k) is THE best retirement account for self-employed individuals
Roth conversions -
What's the big deal with 2010? Your IRA will thank you when you find out
Calendar concern
Solo 401k: Form 5500-EZ
Solo 401k plans must file the IRS Form 5500-EZ (Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan) by July 31 (because the 31st falls on a Saturday this year, you actually have until Monday, August 2nd). But... you do not need to file the Form 5500-EZ if the total of the 401k's plan assets as of 12/31/2009 do not exceed $250,000, unless 2009 is the final year of the plan.
Also, for plans that were formed in 2010, no Form 5500-EZ would need to be filed until 7/31/2011 for the plan year ended 12/31/2010.
Even though the Form 5500-EZ is an information return and not a tax return, it is an important document that needs to be dealt with. The IRS imposes a penalty of $25 a day for not filing returns in connection with profit-sharing plans by the required due date.
So..if your Solo 401k plan was established in 2009 (or earlier) and it had $250,000 in plan assets as of 12/31/2009, you've got a filing obligation coming up soon. Feel free to call me and I'll be happy to assist you with this filing.
The Solo 401(k) -
THE retirement plan for self-employed individuals
I provide tax and retirement planning guidance to a great deal of self-employed individuals, otherwise known as "Indies." Consultants, coaches, real estate agents/brokers, attorneys, and graphic designers are just a few of the professions of the self-employed folks that I deal with. The one common theme each of these solo business owners have in addition to running their business is, "Am I doing everything I can to maximize my retirement account savings?"
The one retirement plan that I seriously recommend for almost all self-employed individuals is the "Solo 401(k)" plan. The reason they are known as "Solo" plans is that they are designed to cover only the business owner and his/her spouse (if you have employees, you'll need a more traditional based 401(k) plan). But yes, even a small business owner can have their own easy to operate 401(k) plan and self-direct it as well into investments like real estate, LLC interests and trust deeds. Click here to read more about the great features of this fantastic retirement account for self-employed individuals.
Roth IRA conversions -
Why 2010 is an important year for your IRA planning
With all the different types of retirement accounts available to individuals, understanding the benefits of each gets rather confusing. But one term you absolutely need to know in the retirement world is "Roth." Any time you hear the word Roth as it relates to retirement accounts, your mental light bulb should start blinking!
That's because Roth retirement accounts (IRAs and now Roth 401(k)s) generally provide tax-free income as opposed to traditional IRAs and 401(k)s that provide tax-deferred income. Big difference!!! So to determine how you can benefit from what Congress has provided everyone in the year 2010, click here. Because you absolutely need to understand how you can create some source of tax-free income for yourself. Click here to read the entire article.
THE retirement plan for self-employed individuals
I provide tax and retirement planning guidance to a great deal of self-employed individuals, otherwise known as "Indies." Consultants, coaches, real estate agents/brokers, attorneys, and graphic designers are just a few of the professions of the self-employed folks that I deal with. The one common theme each of these solo business owners have in addition to running their business is, "Am I doing everything I can to maximize my retirement account savings?"
The one retirement plan that I seriously recommend for almost all self-employed individuals is the "Solo 401(k)" plan. The reason they are known as "Solo" plans is that they are designed to cover only the business owner and his/her spouse (if you have employees, you'll need a more traditional based 401(k) plan). But yes, even a small business owner can have their own easy to operate 401(k) plan and self-direct it as well into investments like real estate, LLC interests and trust deeds. Click here to read more about the great features of this fantastic retirement account for self-employed individuals.
Roth IRA conversions -
Why 2010 is an important year for your IRA planning
With all the different types of retirement accounts available to individuals, understanding the benefits of each gets rather confusing. But one term you absolutely need to know in the retirement world is "Roth." Any time you hear the word Roth as it relates to retirement accounts, your mental light bulb should start blinking!
That's because Roth retirement accounts (IRAs and now Roth 401(k)s) generally provide tax-free income as opposed to traditional IRAs and 401(k)s that provide tax-deferred income. Big difference!!! So to determine how you can benefit from what Congress has provided everyone in the year 2010, click here. Because you absolutely need to understand how you can create some source of tax-free income for yourself. Click here to read the entire article.
I hope the Summer of 2010 will be a healthy and happy one for you and your family. If there is anything that I can assist you with in your effort to achieve greater control and understanding of your personal financial situation, please don't hesitate to call or email.
Until next time, here's to a better way of investing!!!
Integrated Wealth Strategies, LLC
7683 S.E. 27th St., #305
Mercer Island, WA 98040
206-949-8236
www.iwealthstrategies.com
ewikstrom@iwealthstrategies.com
If you received this newsletter as an e-mail it was because we believed you might be interested in its content. If you no longer wish to receive the Integrated Wealth Strategies, LLC newsletter, please click here to unsubscribe.