Best Self Directed IRA?

[Josh Carter]

Any recommendations? Currently talking to a company called Equity Trust whose fee is a little above 1%, does anyone know of a self directed ROTH IRA that can do better?

[Dmitriy Fomichenko]

Originally posted by @Account Closed:

Can I transfer my 401K from my current job that I work at to a solo 401k or self directed IRA? I hold rental properties so technically am also self employed, and I want to continue to put money into my job's 401k so I can keep receiving the company match. What would my options be?

Michael:

First, owning rental properties does not make you a self-employed. You are an investor. The income you receive from rentals is considered to be 'passive' income. In order to establish a Solo 401k plan you need to have a legitimate self-employment activity that would produce 'earned' income, for example:

• Providing consulting services to clients and earning a fee as a result of that
• Real estate agent helping a client buy or sell a property and earning a commissions as a result of this
• Being a "flipper": you buy a distressed property, fix it up an sell it for a profit
• etc. etc. etc.

You don't 'earn' a rental income, it comes to you as a result of you making an investment, it is passive.

Earned self-employment income is reported on a Schedule C of your tax return, where as rental income is reported on a Schedule E.

If you have a 401k with the current employer most likely you will not be allowed to transfer it to another retirement account until one of the following occurs:

1. You are no longer employed there
2. You reach a retirement age

There could be exceptions, but the chances are you can't move those funds.

Your options would be either custodial self-directed IRA or if you wish to have a checkbook control you may want to explore IRA LLC option.