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Tax, SDIRAs & Cost Segregation

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David B.
  • Rochester, NY
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Advantages of Custodian vs. Checkbook for RE Solo 401K

David B.
  • Rochester, NY
Posted Jun 25 2014, 07:12

We are getting ready to purchase our first investment property, a single family house to rent, using a self-directed Solo 401 K.


At first I was leaning toward having checkbook control, but the cost for a custodian-managed account is reasonable, and I am thinking it might be good to have a custodian take some responsibility for paperwork and banking.


What are the disadvantages of using a custodian, other than the slightly higher annual cost? The one I'm considering does not charge per check, so that is not a concern. I assume I can get checks issued very quickly if I am making an offer on a house.

I appreciate any help or suggestions.

David

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