self directed IRA

[Tawnya KABNICK]

I am considering a self directed IRA. Has anyone worked with BuyPD, Am Estate and Trust and Accuplan? I also talked to IRA Financial Group in NY but they do not work as custodians'. Is a custodian required?

[Dmitriy Fomichenko]

Tawnya,

it looks that you work as a real estate agent (based on your profile description), and while self directed IRA will allow you to use your retirement funds to invest in real estate and other non-traditional investments, I want to make sure that you are aware of another option that is available to you: Self-Directed Solo 401k. If you are self-employed you would qualify for this option and there are several major advantages of using Solo 401k over self directed IRA. Here are few:

• No need for a custodian (save $$ on transaction and asset based fees)
• Checkbook control - you don't need to ask custodian consent to make the investment, simply write the check
• Roth sub-account - in essence you can have two accounts in one: regular pre-tax as well as Roth after tax
• High contribution limits up to $56,500 per year, this is nearly 10 times more than an IRA. This feature makes Solo 401k great tax sheltering vehicle.
• Participant loan feature - give you the ability to access cash up to $50K in your account at any time for any reason
• Exempt form UBTI tax on leveraged real estate

There are few other, but I think the above make the point. There is additional info available online if you wish to learn more.

I think it is very important to make the informed decision (knowing all your options). Wish you the best!