You see lots of blog posts on 401(k) plans. You see lots of blogs on identity theft. You see a lot less (though still a lot) blogs on self-directed 401(k) plans (also, referred to as self-administered 401(k) plans, Solo-K plans, one-participant plans, uni-K plans). And, you never really see too many blogs on the combined topic of the two. But, is it possible that your 401(k) plan be subject to identity theft….absolutely.
Recently, the IRS sent out some very useful information….more on that in a bit….but it made me think about the topic. Let’s face it, many more folks may potentially lose more money from making ill-advised investments from their self-directed 401(k) than from losses involving identity theft, but that does not make the topic any less important.
There are many things that, if you are not currently employing, can help ensure that your 401(k) is not subject to such theft. Whether your Solo-K is housed at your local bank or a financial services institution, identity theft should never be an overlooked topic of concern. While somewhat dated, the following article has several good tips related to identity theft of a retirement account.
But, back to the IRS. This recent educational piece from the IRS is a nice little piece related to identity theft and steps you can take to assist yourself. It has useful information related to fraud alerts, credit freezes and contact information for the credit bureaus. Of course, identity theft is a topic that can affect all of us, and any meaningful nuggets of information that can assist us on this topic is….always a good thing.
As always, the information is intended to be educational in nature. It is not intended, nor should it be interpreted as, any form of tax, legal, financial or investment advice. You must always consult with your respective professional in all such matters.