Epic Real Estate Investing - A 401K Tax Hack No One Has Told You About | 326

Episode Date: December 26, 2017

Tax Hacker Tuesday is back with a 401K tax hack that no one has told you about. Learn how you can recycle the money in your 401K and put it to work for you as you grow your retirement portfolio. Get the inside scoop on tax savings from borrowed money! ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, it's Matt here. And 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. And then on Tuesdays, my attorney, Tim Berry, will show you how to keep it. And this is his day. We've added this 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. And speaking of sexy, Tim is going to be joining me at the next epic intensive. He's going to conduct two sessions, 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.

And 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 got to 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. This is Terrio 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 1%? 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. So you want to get the tax deductions available to you of making a contribution to your 401 plan, but a funny thing, you don't have the cash line 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 rolls, 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, and 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. choosing, and then the day after you follow 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. 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. This podcast is a part of the... C-suite radio network. For more top business podcasts, visit c-sweetradio.com.