Sense Financial

14 Replies

I'm thinking about using this company.  Does anyone have any feedback?

I set up a Solo 401K with their help. They responded to questions quickly. I would recommend them.

I've used them and would recommend.

Hello Shawn. I'm on the same boat with you. I'm about to set up a check book IRA. Were you successful in doing a transaction with Sense Financial and can recommend them?

Disclosure: I am a preferred vendor

@Jean Nicolas I service a number of Sense Financial clients after they've opened their Solo 401K and are ready to open a checking account.  This is what I've observed from talking with over 30 of his clients:

1) Dmitriy & Staff are extremely knowledgable and prepare their clients well with the rules of their solo 401K.  I don't get any clients that are confused on how it works, or what the next steps are.

2) In our day the gold standard for customer service is follow up.  I was completely blown away by the attentiveness of the Sense Financial.  They had a missed call from me and I didn't even leave a message and they called me back within 30 min mentioning that they saw they missed my call and asked if I had any questions.  I looked at their linkedin profile to research them and got a nice message asking if they could be of assistance.

3) Sense Financial has an internal web portal for all of its clients that has a library of information.  It has been nice when a client has a question over the weekend to send them their to get their answer.

Originally posted by @Jean Nicolas :

Hello Shawn. I'm on the same boat with you. I'm about to set up a check book IRA. Were you successful in doing a transaction with Sense Financial and can recommend them?

Yes, I've been able to double my IRA in less than 9 months. Sense does a great job setting up everything.

@Jean Nicolas

You may also want to look at the solo 401k if you qualify as it is generally more advantageous than the checkbook IRA.

Following are the similarities and differences between the solo 401k and the self-directed IRA.

The Self-Directed IRA and Solo 401k Similarities

  • Both were created by congress for individuals to save for retirement;
  • Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;
  • Both allow for Roth contributions;
  • Both are subject to prohibited transaction rules;
  • Both are subject to federal taxes at time of distribution;
  • Both allow for checkbook control for placing alternative investments;
  • Both may be invested in annuities;
  • Both are protected from creditors;
  • Both allow for nondeductible contributions; and
  • Both are prohibited from investing in assets listed under I.R.C. 408(m).

The Self-Directed IRA and Solo 401k Differences

  • In order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;
  • To open a self-directed IRA, self-employment income is not required;
  • In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (Checkbook IRA) must be utilized;
  • The solo 401k allows for checkbook control from the onset;
  • The solo 401k allows for personal loan known as a solo 401k loan;
  • It is prohibited to borrow from your IRA;
  • The Solo 401k may be invested in life insurance;
  • The self-directed IRA may not be invested in life insurance;
  • The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);
  • The solo 401k business owner can serve as trustee of the solo 401k;
  • The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;
  • When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;
  • Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);
  • When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.
  • Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;
  • Pre-tax IRA contributions on reported on line 32 of Form 1040;
  • Pre-tax solo 401k contributions are reported on line 28 of Form 1040;
  • Roth solo 401k funds are subject to RMDs;
  • A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.);
  • Roth IRA funds are not subject to requirement minimum distributions (RMDs);
  • The fair market value (FMV) of assets held in a self-directed IRA is reported on form 5498;
  • The fair market value of assets held in a solo 401k are reported on Form 5500-EZ;
  • At termination, the solo 401k is required to file a final Form 5500-EZ and 1099-R; and
  • At termination, the self-directed IRA is only required to file a form 1099-R.

I've just opened a Solo 401k with them. @Dmitriy Fomichenko and his team are great! They make the process easy and painless. Highly recommended.

@Kreighton Reed  Thank you for your feedback. I have noticed they are very organized and thus far like that about Dmitriy and his team!

@Justin Windham Thank you for the validation!

@Shawn Holsapple Great to hear everything's worked out for you! Awesome news in doubling your IRA in less than 9months and that's very encouraging! Can you share more detail how you did that?

@Dennis Canon Awesome! I'll get started getting my paperwork started this week. Thank you for the great feedback everyone!

@Mark Nolan Thank for the bullet point comparisons. It appears overall solo401k has better advantages over regular Self Directed. One key note will be to tansfer the Roth401k to regular Roth IRA before reaching 70.5years to avoid RMD.

In my case, I'm both a self employed (with a seperate IRA) and have a beneficiary IRA which Mom had started taking RMDs.

How can one legitimately take out rental income out of these investments?

Is the mandatory 20% federal taxes withholding applicable only to the 401k portion and not the Roth401k portion? Meaning are my Roth401k contributions and growth protected from the mandatory 20% federal tax withholdings?  

Originally posted by @Jean Nicolas :

@Kreighton Reed  Thank you for your feedback. I have noticed they are very organized and thus far like that about Dmitriy and his team!

@Justin Windham Thank you for the validation!

@Shawn Holsapple Great to hear everything's worked out for you! Awesome news in doubling your IRA in less than 9months and that's very encouraging! Can you share more detail how you did that?

 I just used it to buy homes and then "wholesaled" them to other investors.

Awesome! Thanks for sharing!

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