Posts Tagged "401K plans"

Beneficiary Mistakes — Self-Directed 401(k) or IRA (Part 2)

In the previous post, we introduced three potential beneficiary designation mistakes.  In this post, we will point out a few more. Don’t Name Your Kid! This is not meant as harsh as it sounds.  As with other considerations, this relates to the issue of age.  There are WAAAAY too many people who identify their minor children as either a primary…read more →

Self-Directed 401K Fees — One Time Fee or Transaction Fees?

It used to be that no one knew what self-directed 401K plans were, let alone knowing the differences between 401K plans established with one-time fees, plans with transaction fees and the difference between the two.  Should one pay a lower fee but continue to pay annual maintenance and transaction fees?  That’s up to the account holder.  But, one should know…read more →

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 →

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 →

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 →

Self-Directed 401K Plans — What the Heck is CODA?!

A prospective client once called when he had researched “my 401K” and got majorly confused. He was reading about how he could operate his self-directed 401K plan, how he could the 401K trustee of his own plan and how, hopefully, he could benefit his retirement plan and, ultimately, his retirement savings. But, while researching the ins and outs of 401K…read more →

Self-Directed Roth 401K — More Good Stuff!

Okay, maybe it is because I am familiar with IRAs and qualified retirement plans (e.g., 401K plans), but while almost everyone has heard and understands (basically) the permissibiity of having a Roth IRA, most individuals who are current 401K participants (self-directed or not) have no clue that IRS regulations permit 401K plans and its participants to make Roth contributions. Here…read more →

Both Roth and Pre-Tax Contributions to a 401K Plan?

A question that often comes up is whether a 401K participant can make both Roth and pre-tax contributions to a 401K plan? While it is a simple answer, it is totally understandable why people do not know the answer to the question and why it may confuse them. Why? Well, it is because that 401K plans do NOT have to…read more →

SD 401K Plans — Easily Invest in ANY Asset from One Account!

Many promoters of self-directed plans extol the benefits of one bank account for the 401K plan.  While this is certainly permitted with your plan, wouldn’t it be attractive to have an account that literally will let you purchase both traditional and non-traditional assets all from one account?! I use the $1M example….let’s say as the trustee of the plan you…read more →