IRS Prohibited Transactions

Encumbered IRA Asset Rollover into a 401(k) — Permissible?!

Recently, I did a blog on a social media site for which I was lambasted by one really, really friendly, self-proclaimed, all-knowing expert on ANYTHING related to IRAs (yes, if you can sense I use sarcasm, you would be correct!).  I was being criticized for how I answered a question by a person in the room when I was only…read more →

Thinking About a Self-Directed IRA? Ever Thought of a 401(k)?!

I recently did a guest video blog for www.bawldguy.com.  The subject related to the benefits of a solo 401(k) plan vs. any IRA.  Are IRAs bad…of course not.  But, especially for an self-employed individual, I just don’t see the benefits of any IRA over a 401(k). One should understand that the potential penalties associated with a Prohibited Transaction within an IRA…read more →

Self-Directed 401K Plans — Don’t Trip

It’s a nice day, you are taking a nice casual walk and almost like someone playing a joke on you, you stumble while you are walking and almost fall flat on your face.  You look back, firmly believing that someone left something out to purposely make you look foolish, and what do you see?  Yes, that small crack in the…read more →

Double Taxation for Your IRA? Ever Hear About It?

Many people are, understandably, excited and interested in establishing a self-directed IRA or 401(k).  Good or bad, right or wrong, many individuals are concerned about having some or all of their retirement assets in the market and are looking for true ways of diversifying.  With the ups and downs of Wall Street and concern of market manipulation, it shouldn’t come as…read more →

Self-Directed IRA & 401K Promoters — Questionnable Practices?!

A couple of weeks ago, a client forwarded an email with a link to a webinar made by a self-directed IRA and 401(k) promoter.  The webinar was your typical webinar that spent a significant amount of time talking about the superiority of the company in establishing self-directed plans and guiding their clients to great wealth through proper planning of their…read more →

Are There Really 3 Types of 401K Plans?!

  If you spoke to the IRS or DOL, they most likely would tell you that all 401K plans must meet the code requirements established for 401K plans and not differentiate between any particular 401K.  However, are there differences?  No, from the standpoint that all 401K plans must adhere to the regulations established for 401Ks, but yes as it relates…read more →

Self-Directed 401K Plan Valuations — A Review

Many promoters of self-directed 401K plans emphasize (and correctly) to their clients that an annual reporting of the assets of an individual 401K  to the IRS is not required IF the assets of the plan do not exceed $250,000 in FMV (Fair Market Value).  However, while this is great, the IRS also expects a 401K trustee to conduct an annual valuation of the assets of the…read more →

Checkbook Control 401K vs. Trustee Control 401K — What’s the Difference?

In the self-directed IRA and self-directed 401K industry, a very common marketing term often used to explain one’s potential to invest in assets other than stocks, bonds and mutual funds is “checkbook control IRAs or 401Ks” .  You know what I am talking about…..the “big boys” will  limit your investment options but you MIGHT have an interest in investing into…read more →

IRA and 401K Rollovers — Is this a Horror Movie?!

IRA and 401K Rollovers — Ugh, rules for such rollovers are often misunderstood, questionable in their clarity and often mishandled by honest, tax-paying account owners.  In fact, the rules are often so much misunderstood by many that the IRS often reviews exception requests by individuals requesting relief of rollover tax penalties….not because they were trying to break a rule BUT…read more →

Self-Directed 401K — Three Different 401K Plans?!

Well, practically speaking and based on IRS and DOL regulations, the tax code for 401K plans apply to all 401K plans. However, most people are not familiar with the fact that there are some different 401K eligibility and 401K reporting requirements for 401K plans and that is what we are going to introduce. Let’s take the 401K that most of…read more →