Self-Directed IRA & 401K Basics

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 →

Application of One-Per-Year Limit on IRA Rollovers

Well, you didn’t necessarily ask for it, but I am going to give it to you anyways.  If you are an IRA account owner who, let’s say, likes to execute IRA rollovers, you want to pay particular attention to this. Now, mind you, I always encourage folks to execute direct transfers between IRS-approved custodians.  I understand why a certain element…read more →

Inherited IRA Mistakes

This post is not related to an IRA that identifies one spouse as a beneficiary of their spouses IRA.  This is merely intended for any person who inherits an IRA from another individual and they are a non-spousal beneficiary. IRA rules for non-spousal beneficiaries can be extremely complicated, even for the individuals who are trying to do everything correctly.  And, while…read more →

IRA Transfers and Rollovers

At this time of year, many people may consider executing IRA transfers and rollovers.  It is always good to provide a brief review of this process…and we will keep it brief. There are two primary means by which people move IRA funds to another IRA, whether it is a self-directed IRA or not.  That is either through a direct Trustee-to-Trustee…read more →

IRS Increases 401(k) Contribution Limits for 2015

Today the IRS announced cost-of-living adjustments to various retirement plans, including 401(k), 403(b), 457, federal government Thrift Saving and IRA plans.  While the intent of this post is not to regurgitate the news, it should be noted that IRA limitations were unchanged.  However, for those of you who participate in a 401(k) plan or self-directed Solo 401(k) plan, you should…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 →

IRA and 401(k) Rollovers

Reminders on IRA and 401(k) rollovers are always good to review and hearing directly from the IRS on this process is never a bad thing either.  You see, while rollovers are not difficult to administer and process, it is always amazing how many people inadvertently make mistakes in this process…and, believe it or not, so do financial service companies executing rollovers on your behalf. IRA…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 →

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 →

Self-Directing Your IRA — How Long Will it Take?

Realistically, how long does it take? You have made the phone calls and done your research.  You may have also spoken to some self-directed companies who give the impression or outright tell you that your account can be established and funded in a matter of days.  Is this realistic? Before you answer …think about some aspects of establishing a self-directed…read more →