How Your Tax Preparer Has All Your Self-Directed 401K Business Out in the Street | 485

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Self-Directed 401K Business

Are you curious about the best way to fill out a tax return on a self-directed 401K business? In this episode, learn how to do it, the differences between 5500 EZ and 5500 SF forms, and why you should use an EZ instead of an SF.

Self-Directed 401K Business

What You Will Learn About How Your Tax Preparer Has All Your Self-Directed 401K Business Out in the Street: 

  • How to file a tax return on a self-directed 401K business
  • 5500 EZ form vs. 5500 SF form and,
  • Why you should use an EZ instead of an SF

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Transcript:

Matt Theriault: Hey rockstar, if you have a question here for Tim that you’d like him to answer on the show, anything tax related, anything asset protection related, go to taxhacker.com/questions. Post your question there and then we’ll answer it live right here on Tax Hacker Tuesday. Enjoy the show.

Speaker 1: 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: Alright, so you’ve got your self-directed 401K. It’s just you and your spouse who are the participants inside the plan. It’s time to file a tax return. You have over $250,000 of assets. What form should [I 00:01:04] use? A 5500 EZ? Or a 5500 SF? And if you’re even asking this question, you’re probably working with a tax preparer, and let me explain why.

Most tax preparers want you to fill out the 5500 SF and the reason being is with a 5500 SF you can electronically file. It makes it so much easier for them, but the big challenge with a the 5500 SF is its public record. That’s a public record document. Now anybody can go on the internet, type in the name of your 401K plan, and see exactly what assets you have inside your 401K plan, and what you’ve been doing.

5500 EZ, on the other hand, that’s a paper document. It can’t be electronically filed. It’s super simple to fill out. It’s just a front and back piece of paper, super simple, and it is not public record. So, if you’re using a tax preparer to fill out your 5500, make sure they don’t use the SF. Do not use the SF, use an EZ instead.

Now they might get upset and flustered and say “I’m not going to do it unless we can electronically file,” but well just know that if you file electronically, all your information regarding your retirement plan is now going to be public record.

Speaker 1: 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: Hey, whenever you’re ready to have Tim customize a Tax Hacker Blueprint for you, a special custom blueprint just for you, go to taxhacker.com, answer a few questions about your situation, tell Tim what you’d like to have happened, and then his team they’ll take it from there, and then he’ll give you a copy of his free book. His free book all around Trump’s new tax plan.

Specifically what the press isn’t telling you, so go to taxhacker.com and we’ll see you right here next week. Taxhacker.com, take care.