Self directed IRA

7 Replies

I have a small amount of money (15K) in an IRA from an old employer that I have not rooled over. Is there any way that I can put this into a self directed IRA, or is it to small?

Do you mean 401(k) @Ken Cooper  ? If it is a 401(k), I doubt they'll let you borrow against the plan since you're no longer with the employer.

There are rarely going to be dollar minimums associated with IRA accounts.

Are there any investments you can picture going after with only $15k?

One important consideration will be factoring in the IRA custodial fees to your overall rate or return. What will that do to your bottom line? If you're still pleased with the results, I think you have your answer.

Feel free to ask additional questions. I'll PM you to connect. 

Ken, people mean different things by "self-directed." A truly self-directed plan will allow you to invest in "off-Wall Street" products, such as real estate. If that is what you want, $15k is small but not unheard of. You can roll it into a SD IRA or a Solo 401k, if you qualify. In the latter, you will be able to borrow up to 50%, i.e. $7,5000. It all depends what you want to do with the money.

@Loren Whitney yes, I did mean 401k. I can't imagine that there would be a good investment foe under 15k. I guess I was wondering if there was something like a mutual fund I could get that money into. From my understanding that is what a REIT is, but I do not know if I could put those funds into a REIT without penalty.

Thanks for your help,

Ken Cooper

There are plenty of publically traded REITS for you to research. Any self-directed brokerage house will let you get into these.

If you find a private REIT or real estate investment offering that you'd like to pursue, you'll need to go with an SDIRA provider that allows alternative assets. Jeff's comparison was pretty much spot on.

Another idea is to try to partner for a purchase or fund someone else's purchase. If you know a successful RE investor who's cash poor, you could either be a hard money lender for him or you could bring in other people on a deal you find. I've just gotten off the phone with a company that organizes self directed IRAs and they said there's no problem with my IRA being a part-owner on a property. You could also own just 15% of a property...or 5% if you can find someone whom you can work with and who's willing to work with you.

Thanks for the information @Jeff Astor.   I thought I might be able to role all of the funds over not borrow against it.  I will have to do some more research.

 Ken Cooper

@Ken Cooper  there are some investments that you can invest in like real estate. I have 3 properties i have purchased in the last 2 years and I have less than $18,000 dollars in each one of them. They are all valued over $50,000.  One of them I purchased with my sisters SDIRA and another one from another BP members SDIRA. You can do some research about these properties just search sub30k properties.

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