A 401K Tax Hack No One Has Told You About | EREI 326

A 401K Tax Hack No One Has Told You About | EREI 326

Tax Hacker Tuesday is back to share a 401K tax hack that no one has told you about. Learn how you can recycle the money in your 401K plan and put it to back work for you as you keep growing your retirement portfolio.

Get the inside scoop on how to realize tax savings from borrowed money!

401K Tax Hack

What You Will Learn About A 401K Tax Hack No One Has Told You About:

  • Learn how to keep more of the money you earn on Tax Hacker Tuesday

  • Keep more of your money and learn how you can find a way to

  • How to get tax deductions available using your 401K

  • How you can borrow from your 401K plan

  • 401K loan options to consider for borrowing from your retirement plan

  • Where you can learn about Cash Flowing investments – Cash Flow Conclave

401K Tax Hack

Recommended Resources:

  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.


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401K Tax Hack


Matt Theriault: Hey, it’s Matt here.

If you’re just finding us for the very first time, you found us on Tuesday. This is Tax Hacker Tuesday. See, on Monday, I show you how to make money in real estate. Then, on Tuesdays, my attorney, Tim Berry, will show you how to keep it.

This is his day. We’ve added his new show to our release schedule. So expect it. It’s here each and every Tuesday from this point forward. Tim comes on – sometimes it’s me, sometimes it’s one of his buddies, sometimes it’s him all by himself – sharing exciting things about taxes.

Now, I know that sounds a little bit like an oxymoron, but I’m telling you, when you start making money, this type of tax talk – it gets really, really sexy.

Speaking of sexy, Tim is going to be joining me at the next Epic Intensive. He’s going to conduct two full sessions on creative financing, on how to take taxes, how to take asset protection, how to use all these tools of the wealthiest people in our country, and how to use them to build your wealth and protect your wealth.

Tim’s a total whiz when it comes to this stuff. I mean, today’s episode is probably going to really cause your brain to hurt a little bit. But that’s why you gotta see him in person – so he can do this for you and he can answer your questions.

So if you haven’t got a ticket, you might want to do that quickly because they are really going fast. Once the word is out that Tim is going to be there. So go to epicintensive.com, grab your ticket, and I’ll see you there at the end of January. Otherwise, enjoy the show.

Announcer: This is Theriault Media.

Did you know that up to 50% of your lifetime income will be wiped out by taxes? What if you could stop this madness? Isn’t it about time you play on a level playing field with the wealthiest one percent?

Now you can. Tim Berry, attorney-at-law, shares here each and every week current tactics and strategies that anyone can implement to hack the tax code. Protect your assets and keep what’s rightfully yours. It’s time for Tax Hacker Tuesday.

Tim Berry: So you want to get the tax deductions available to you, of making a contribution to your 401K plan, but the funny thing, you don’t have the cash lying around to make the contribution.

Is there a solution for you?

Simple answer is yes, there is. Use the 401K’s money.

Now, what’s this madness that I’m talking about?

This is what it is. With a 401K, you’re allowed to borrow money out of the 401K plan. So if April 15th is rolling around the corner – or October 15th if you followed a valid extension – if that time’s coming up and you want to get the tax deduction for your 401K contributions but you don’t have the money to do it, no big deal. If you already have money inside the 401K plan, just borrow the money out and then contribute it back into your 401K plan. Now you get that tax deduction. So you’re basically recycling your 401K’s money.

Now, by the way, this has to be a legitimate loan. You have the requirements that you have to meet for 401K loans. Can’t be greater than 50% of the account balance or $50,000, whichever is less. There’s also a loophole for if the account balance is less than $10,000. But you have to meet the 401K loan rules and it is a valid loan. It has to be paid back. But this is a great way to get the money that you might need to make a contribution to your retirement plan.

Oh, by the way, if you have no money inside the retirement plan, no big deal. Put it inside of the retirement plan, take the deduction on your 1040, or whatever form you’re using. Then the day after you file the return you’ve made the contribution, borrow the money out of the retirement plan. Once again, you have to follow the formalities of a 401K loan, but as long as you do that, it’s a great way to get tax savings from borrowed money.

Announcer: That’s it for today, as we dream of a tax system that works just for you. But until then, you have Tim Berry. See you next Tuesday for another episode of Tax Hacker Tuesday.

Matt Theriault

Real estate investor and educator.