8 tagged with "Retirement Planning"
Retirement planning for the self-employed and small business owners, comparing Solo 401(k) and SEP-IRA plans, including 2026 contribution limits, employee deferrals, employer profit sharing, catch-up rules, Roth options under SECURE 2.0, and plan setup deadlines
The 2026 ACA Subsidy Cliff Is Back: A Survival Guide for Self-Employed Owners, Freelancers, and Early Retirees
The enhanced premium tax credits expired January 1, 2026, restoring the 400% FPL cliff. This guide walks self-employed filers, S-corp owners, freelancers, and early retirees through the 2026 applicable percentage schedule, MAGI levers like Solo 401(k), SEP-IRA, HSA, and Section 162(l), and Form 8962 reconciliation strategies to avoid five-figure repayments.
Solo 401(k) vs SEP-IRA in 2026: Contribution Limits, Super Catch-Up, and Mega-Backdoor Roth for the Self-Employed
Compare the 2026 Solo 401(k) and SEP-IRA limits side by side — when each plan wins, how the SECURE 2.0 super catch-up adds $11,250 for ages 60–63, the mega-backdoor Roth strategy for after-tax conversions, the 20% versus 25% Schedule C calculation, and the Form 5500-EZ filing required once plan assets cross $250,000.
Cash Balance Pension Plans: A Six-Figure Tax Deduction for High-Income Business Owners
A cash balance plan lets a 55-year-old business owner deduct roughly $230,000 a year in retirement contributions — far above the 401(k) ceiling — because a defined benefit pension caps the retirement benefit, not the annual deposit, so limits scale with age rather than income.
The Minister's Housing Allowance: Section 107, the SECA Trap, and the Retired-Pastor 403(b) Designation
Section 107 lets ordained ministers exclude designated housing costs from federal income tax, but the allowance is still added back for SECA and only an in-advance written designation survives audit. A practical guide to the three-part cap, Form 4361's irrevocable opt-out, and the 403(b) designation that keeps a retired pastor's distribution income-tax-free for life.
Section 1041 and Divorce: A Guide to Property Transfers, Carryover Basis, and QDROs
Section 1041 lets spouses transfer property tax-free during and after divorce, but carryover basis, the six-year window, QDROs, ISO conversions, and post-TCJA alimony rules quietly reshape every settlement. A working guide to what must be fixed before the decree is signed.
Form 1099-R Box 7 Distribution Codes, Decoded
A field-tested guide to every Form 1099-R Box 7 code retirees and beneficiaries actually see — Code 1, 2, 4, 7, G, H, M, and Q — with the specific custodian errors that trigger a 10% penalty and how to fix them before April 15.
The IRA 60-Day Rollover Trap: How One Tax Attorney's $65,000 Mistake Rewrote the Rules for Every American Retirement Saver
After Bobrow v. Commissioner, the once-per-year IRA rollover limit aggregates every traditional, Roth, SEP, and SIMPLE IRA you own. Here is how the rule works, what a violation costs, and the trustee-to-trustee transfer that sidesteps the cap entirely.
Solo 401(k) vs. SEP-IRA for the Self-Employed: 2026 Limits, the Roth Option, and the Pro-Rata Trap
For the self-employed, a Solo 401(k) often shelters more than double what a SEP-IRA does at the same income — a $90,000 earner can contribute $47,000 vs. $22,500 in 2026. This guide covers the limits, the Roth option, the pro-rata rule, and the December 31 deferral deadline.