All Forum Posts by: Dmitriy Fomichenko

@Steven Hamilton II

@Steven Hamilton IIgood point, leveraged real estate in Self Directed 401k is NOT subject to UBIT! This is just one of the benefits of the 401k over an IRA, among others are: Checkbook control, Roth sub-account allowing tax free investing, access to funds for personal needs via participant loan and some more.

@Greg W.

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. 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 is additional info available online if you wish to learn more. Hope this helps you be informed of all the options that are available for you.

Mike, please allow me to clarify your comment. Almost all qualified retirement funds can be rolled over or transferred into self directed Individual K (or Solo 401k). There is only one exception: Roth IRA. If you have funds in a Roth IRA, then those funds can not be moved over to Solo 401k. However, almost all other accounts can. Few examples: Traditional IRA, SEP IRA, Simple IRA, 401k, 457, 403b.

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!

Someone contacted me recently trying to recruit into Stonbrook stating that they also set up self directed IRA's and 401k. I could not find any info on that. Anyone had any experience with them in regards to self-directed IRA?