There is a saying that goes something like, “with great freedom comes great responsibility.” This statement, when applied to IRAs in general, and self-directed IRAs in particular, couldn’t ring more true. It may not be a question of “how to be self-directed”, but rather IF you should be self-directed. Why? The penalties associated with triggering an IRS Prohibited Transaction within…read more →
Many people who have established self-directed IRA and 401K plans are always cautioned about maintaining strict compliance with IRS Prohibited Transactions. One might always want to consider such prohibited transactions similar to the IRS’ 10 commandments. However, before even starting with investing from their plan, there is a very key issue for many people that, if not careful, may present…read more →
What does IRS Prohibited Transactions have to do with the Holy Trinity of cooking? Well, where the holy trinity is the core to cooking, Prohibited Transactions are the core to qualified retirement plans (e.g., IRAs, 401Ks). You have to make sure you know and do not violate IRS Prohibited Transactions!
The answer to the first question is no. The answer to the second question is YES. With Congress’s passing of ERISA (Employee Retirement Income Security Act (of 1974)), individuals have been able to self-direct their retirement investment decisions. There is nothing precluding individuals from self-directing either their IRA or 401K assets as long as their plans are established and maintained…read more →
You should really watch this video BEFORE you read this blog…and, maybe you have. In the world of self-directed retirement plans, there are many different options on how to self-direct and, with these options, different structures of fees. Just like the commercial, you may not want to have that same feeling with fees for your self-directed IRA or 401K. You…read more →
Many a blogs and articles have been written from this author and others about the benefits associated with a self-directed IRA and 401K. So, that being said, why would this post/article even begin to state that establishing a self-directed IRA might be the worst mistake you ever made?! Why would the ability to self-direct one’s own retirement assets be a…read more →
I remember as a young man that my dad asked me if the family should buy a Pontiac TransAm…I was floored! To this day, many moons later, I can still see the 2″ X 2″ advertisement in the local paper showing “my” car on sale for $3,596 (yes, I still remember!!). Whether wishful thinking or just playing with his son,…read more →
The simple answer is…..NO! Why? Remember, the “I” in IRA stands for Individual, and not anyone else. While you can certainly make other individuals to beneficiary of your IRA, it is still YOUR IRA. So, with regard to a self-directed IRA, a typical question will be, “Is there any way my IRA and my wife’s IRA can be brought together…read more →