Love the show and thank you very much for answering questions.
I would like to better understand the actual cost of doing a side door solo-401k plan for real estate investors.
I’m a good candidate based on your previous discussions because I only have rental income and I can devote a substantial amount of money per year to savings or retirement accounts. I’m not sure if it’s worth the cost and hassle to convert passive to active income AND set up and manage another LLC. I also would convert to Roth so this would mean I need to pay FICA to put funds into a retirement account. I’m already a good saver so I do not need the structure of a retirement account in order to save money. Would the FICA tax on the future management income be 7.5% (given the self employment deduction) or is it 15%? I also like the QBI deduction. Would I have to find the sweet spot for getting both the 250 hours for QBI and then accumulate enough active income hours, via my future management LLC, to support a large solo-401k contribution? I don’t need the real estate professional status (to offset other income) but I probably put in the 750 hours per year (I usually stop logging my hours after the QBI minimum is met). What is a reasonable hourly rate to actively manage my properties to get the largest income for 401k purposes? I’m an experienced and skilled expert :-), so I should command top dollar. Do you have a Kohler schedule for this approach? I know your approach to the reasonable compensation schedule for S-Corp W-2/K-1 and was wondering if you have something for maintenance LLCs where the goals are different for achieving the reasonable compensation?