IRS Prohibited Transactions

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 →

Self-Directed 401K — How About NO CUSTODIAN Requirement?!

Ah, you have done all your research on self-directed IRA plans, you learn about all the IRS regulations and Prohibited Transactions affecting both IRA and 401K plans, and you even are trying to determine whether you should establish a Roth IRA or possibly do a Roth IRA conversion with your current funds. Undoubtedly, in your research, you quickly learned that…read more →

Your IRA or 401K Broker — An Oldie, but a Goodie!

First of all, I hope all of you had a wonderful 4th of July holiday. Certainly realizing that very few of us will probably actually be working on this day (July 5), I wanted to post this funny video because I believe at various times in all of our lives, we have experienced a similar experience to what is in…read more →

Self-Directed IRA Contribution Limits — Who Stinking Cares?!

Well, actually, all of us should. So, why do I have such a strong commentary on the subject matter of IRA contribution limits…whether it be an IRA, Roth IRA or SIMPLE IRA? It is because in comparison to a 401K plan, the IRA just doesn’t hold up with any aggressive planning you may have to increase the value of your…read more →

Self-Directed IRA & 401K — Legal Alert — A Prohibited Transaction that You May Not Even Know About

A Prohibited Transaction that you may not even know about is what the IRS refers to as “self-dealing” between a retirement plan and the account owner (disqualified individual). Specifically, and related to this post, the IRS stipulates that a Prohibited Transaction has occurred if (please note this is a particial list): Any of the following acts between the plan and…read more →

Self-Directed IRAs — The Proverbial Dog?! (Part 4)

This is Part 4 of our “Home Alone” tribute and your “woof woof” IRA.  You may remember from the three posts that we outlined that while an IRA is never a bad thing, compared to a 401K it is like dog food….thus, woof woof. That being said, what is a fourth reason of why the 401K is a clearly more preferred retirement plan…read more →