IRS Prohibited Transactions

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 →

Self-Administered 401(k)

The majority of references on websites (including this one) that refers to one’s ability to take investment control of their 401(k) plans refers to such plans as a self-directed 401(k).  This is certainly a common norm in the industry; however, is this term the most aptly suited for this self-directed arrangement?  Probably not.  Other than using this term for marketing purposes,…read more →

401(k) Investment Options

There are so many 401(k) investment options.  Yes, you heard that correctly, but you probably don’t believe me.  You may be in your traditional plan where your 401(k) investment options are going to be limited to the normal world of stocks, bonds and mutual funds.   But, is that the only investment options the IRS permits your 401(k) to have?  Are…read more →

Recruitment of Real Estate Agents

While this post is written more from the standpoint of a real estate broker recruiting real estate agents, it is applicable to any professional real estate agent who is interested in their career. Can a self-directed 401(k) or self-directed IRA assist a real estate broker with the recruitment of real estate agents? Possibly. Many real estate brokerage offices take an…read more →

Unrelated Debt Financed Income (UDFI)

Many people start going down the path of creating a self-directed IRA and have never heard of the term Unrelated Debt Financed Income (UDFI).  And, when they visited with the company that established their self-directed IRA, the concept of Unrelated Debt Financed Income may not have even come up.  I mean, if an IRA is not planning on financially leveraging an…read more →

Self-Directed IRA LLC Valuations

All IRA custodians must report the FMV (Fair Market Valuation) of an IRA to the IRS annually.  So it is also true that self-directed IRA LLC valuations must be provided as well by the custodian to the IRS.  In the past, self-directed IRA LLC valuations may have simply consisted of the IRA account manager listing an actual dollar amount as of the…read more →

Various Gifting Options for Charities

There are various gifting options for charities that a charitably-minded individual might consider.  Using a self-directed IRA or 401(k) plan to donate is not necessary, however, an individual may wish to establish a self-directed plan during the accumulation years of their plan to grow their retirement account with the freed0m and flexibility they may desire.  Also, it actually may be easier …read more →

New IRA Rollover Rules — When Doesn’t it Apply?

You know there are many blog postings on the recent Bobrow vs. Commissioner Tax Court case with these blogs going into, sometimes, great detail about the ruling from that case which deals with IRA to IRA rollovers.  Since this post is not specifically about this case, let’s just simply state that beginning in 2015 an individual will be limited to…read more →