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Many times people will call and ask the following: 1) “What is a Traditional IRA?” 2) “What is a Roth IRA?” 3) “Can I Self-Direct”? Typically, they have done some online research and realized that they may be able to self-direct the assets within their IRA or 401K. However, while these folks have clicked endless online links as to why…read more →
People inquire frequently on what is the difference between all the self-directed 401K plans they see advertised on the internet. When they see different “named” type of plans, they naturally assume there is a difference. Research the topic on any given day and you will see references to: My 401K Plan Self-Directed 401K Self-Administered 401K IK I401K IPlans SoloK and…read more →
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 →
The conversation of ERISA….and whether a self-directed 401K plan falls under its mandate…comes up a few times a year. However, strangely enough, when people inquire as to whether a self-directed 401K plan falls under ERISA, they have typically been informed by financial professionals, CPAs or attorneys that their plan MUST comply with ERISA. This creates the impression with the prospective…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 →
Just like any 401K plan, you may now wish to fund your plan and maximize it to the highest potential possible. Of course, you always have and, should exercise, the option of funding your plan with contributions….both employee deferrals and profit share contributions. But, you have other options available to you, should you desire, get fund your plan as much…read more →
I often receive many inquiries related to loans permitted from a qualified plan, such as a 401K plan, but also including 403(b) and 457 plans. I always advise that while loan provisions are an attractive feature to a 401K, including a self-directed 401K, it is only my job to educate on what is permissible, and not that they should exercise…read more →
For those of you who have your own self-employed businesses that does not employ any other individual (other than potentially your spouse), keep in mind for your retirement contribution plans that the 401K is not your father’s 401K. Well, actually, it kind of is, as the IRS doesn’t differentiate between a 401K plan sponsored by an employer with employees vs….read more →
Well, yes and no. So, let’s explain. In the eyes of the IRS, a 401K is a 401K. There is probably no where in the IRS code where you will see any reference to Self-Directed 401Ks, Solo Ks, I-Ks and so on and so on. All those terms are more marketing driven than actual IRS terms. However, the IRS does…read more →
With 2012 ending and you most likely starting to file for your 2012 taxes, it is time to provide a timely reminder on any filing requirements you have for the 401K plan in which you operate as the plan trustee for your plan. When do you need to report the value of your plan? Quite simply when: 1) The plan…read more →
