IRS Prohibited Transactions

IRS Rules for Reporting IRA and 401(k) Rollovers

You have created a self-directed IRA or Solo 401(k) plan and you rolled over funds from other retirement plans (e.g., IRA, 401(k), 457, 403(b)) into your new plan.  You are now happy and content that you have a self-directed plan, and are on your way to making investments into non-traditional assets (e.g., real estate).  You also know that as manager…read more →

Setting Up a Self-Directed IRA with an IRA Custodian

The question that most people are interested in asking, but they rarely ask.  What steps are typically followed with the IRA custodian when establishing your self-directed IRA LLC?  Why? Probably because they place significant trust in the self-directed company assisting with the establishment of the self-directed IRA LLC.  But, since a portion of that process involves the IRA account owner’s involvement, you…read more →

Administration of Your Solo 401(k)

This is a topic that encompasses many moving parts…and, we are going to address one very small (but important) moving part in this process.  Further, we are going to keep the “concept” brief and to the point without belaboring the discussion. The administration of your Solo 401(k) is important and a responsibility that should be taken seriously.  Many companies emphasize…read more →

A Little Peek at New IRS IRA Reporting Requirements

Speak of the devil, while I just did a blog on new IRA reporting requirements for 2015, the IRS has come out with a “DRAFT” copy of a newly-proposed Form 5498.  The primary (if not sole) purpose of this draft form, and what will be a final revised Form 5498, is to ascertain and report the FMV (Fair Market Valuation)…read more →

Self-Directed IRA and 401(k)s — Non-Traditional Assets

You have done some research on various websites related to self-direction.  It doesn’t matter whether it is a self-directed SEP-IRA, Roth IRA, Traditional IRA or SIMPLE IRA.  Or if it is a 401(k) plan, which is also marketed as Uni-K, Solo-K, self-directed  401(k) and self-administered 401(k), one basic tenet is still in play…they can all be self-directed.  In learning more…read more →

New Reporting Requirements for IRAs

Any IRA account owner, but especially a self-directed IRA account owner, should take particular notice of a new IRS reporting requirement that will affect IRAs in 2015.  This new reporting requirement was originally to be effective in 2014; however, the IRS delayed the implementation of this requirement until 2015 to adequately provide time to IRA custodians to prepare for the…read more →

401(k) Loans and Prohibited Transactions

Self-directed IRA and Solo 401(k) plans (also known as Uni-K, self-directed 401(k), self-administered 401(k) and individual 401(k) plans) have strict rules imposed upon the plans to not engage in IRS and DOL Prohibited Transactions.  These rules are specific in their intent and there are significant penalties associated with a plan participating in self-dealing and other types of specifically prohibited transactions. However, through…read more →

Operation of a Self-Directed 401K

The operation of a self-directed 401K is much more than just opening an account for the plan.  Unfortunately, that is how many people perceive it as the individual 401K plan has much less reporting requirements than its cousin, the multi-participant 401K plan.  While certainly not faced with the same type of reporting requirements, the operation of a self-directed 401K plan…read more →

Operating Agreement for Self-Directed IRA LLCs

I occasionally receive a question from a client on why is an operating agreement for self-directed IRA LLCs important. The genesis of the question usually rotates around when an IRA account owner is establishing the bank account for their IRA LLC, the bank will require that the individual provide the Federal TIN (Taxpayer Identification Number) and the approved articles for the…read more →

Real Estate Agents Investing With Self-Directed IRAs

Real estate agents investing with self-directed IRAs can make some mistakes with how they execute their self-directed investments.  I wanted to write this post after a recent seminar with real estate agents, which included real estate agents investing with self-directed IRAs.  The meeting was to introduce the benefits associated with real estate agents not only establishing their own self-directed retirement plan,…read more →