Self Directed IRA's and 401k's

Member since 2022 · 22 posts · 10 votes

Hello Everyone. I am a huge biggerpockets fan. I am hoping there is someone here that could recommend a self directed account. I have a traditional 401k that I want to move!

Thanks in advance!

David

Lancaster, CA

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Dmitriy Fomichenko

Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes

@David Newfang,

Not every custodian will allow checkbook control. We use Solera bank for our Checkbook IRA clients.

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Account Closed
Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
3y
Quote from @David Newfang:

I am hoping there is someone here that could recommend a self directed account.

I had my SDIRA setup with The Entrust Group in 2016. No complaints so far. Regardless of which custodian you use make sure you get checkbook control or else the fees will kill you.
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David Newfang
OP
Member since 2022 · 22 posts · 10 votes
3y
@Account Closed Thank you, I will look into them!
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Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
3y
@David Newfang,
Not every custodian will allow checkbook control. We use Solera bank for our Checkbook IRA clients.
2 Reply
Brian EastmanPro Member
Self Directed IRA & 401k Advisor · Wenatchee, WA · Member since 2014 · 2k+ posts · 2k+ votes
3y
@David Newfang

There are a number of self-directed plan formats offered by different types of providers that suit the needs of various portfolio types.

A custodian like Entrust is simply the base administrative/processing layer. You can just house an account with a self-directed custodian and have them process your transactions. This is not what is referred to as checkbook control, but for one or two relatively static assets like a private fund or REIT can be effective.

For more dynamic portfolios with multiple assets or certain investments like rental property that generate a lot of transaction activity, relying on a 3rd party custodian as your processor becomes unusable and expensive. Upgrading to a Checkbook IRA where the IRA held by a specialty custodian like Entrust or Solera owns a LLC or Trust that you can manage and use to control the IRA capital becomes more effective.
The checkbook IRA is kind of like having a conventional IRA invest into a "fund" (the LLC/Trust) where you get to be the fund manager, and the "fund" can invest in anything the IRS rules allow for.

If you are self-employed with no full time employees, a self-directed Solo 401(k) is a particularly elegant solution that provides checkbook control and has other advantages like high contribution limits, Roth sub-accounts, and the ability to borrow from your plan.

There are several quality providers such as @Dmitriy Fomichenko active on Bigger Pockets.
Do a bit of reading and then get on the phone with a few of us. It is a pretty broad and intimidating field when you first start, but once you chat with an expert or two, you can narrow down how a self-directed IRA fits into your specific goals and find a partner who can support you in those efforts.
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Account Closed
Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
3y

@David Newfang @Brian Eastman David, Brian nailed it as always. This is exactly what I meant when I said checkbook control. My LLC allows me to buy all of my rental properties without any interaction with my custodian except for year end reporting to the IRS. It has been life changing not having to rely on the stock market and control our own retirement.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@David Newfang
Right now we recommend quest trust
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