Solo 401k/Self Directed IRAs

Water Cooler
#1

soooo anyone know what the deal with this.

i hear you can xfer 401ks and ira in this solo 401k/self directed ira, then it can become your piggy bank for business purposes and real estate investments with complete control from you.

soooo do you know anyone that has done this?

if this is the case, this is amazazing. you save tax deferrred then you invest/spend with after tax dinero.

#2

Nerdy, when you’re bankrupt, I’ll be sure to buy the Bang Bus episode that you’re starring in to pay your debts. We got you covered, don’t worry.

#3

I’m a FA and we have done this for 2 clients. They move money to the SDIRA then buy a property. One guy flipped it then bought another, all within the IRA.

Downsides - you have to start dong the reporting of the value of the account to the IRS, rather than your 401k custodian doing it.

  • couple tax issues like transactions must be at arms length, and weird stuff if you want to also use a loan to buy the property.

If done correctly it can be a solid diversifier.

#4

i hear a solo 401k is much better. plus you can also contribute far more money into it assuming you got income. whyd u choose sdira?

ohai - thx mannnnn really glad to have your full support!!! you are my little putttt

#5

whats a putttt?

#6

Here is the sum of everything I know about self-directed IRA’s: They’re very complex, and it’s easy to run afoul of IRS rules. Therefore, I don’t do them.

SoloK - If you have 1099 income on your Schedule C, you can do one of these (or a SEP IRA). There are a few differences, but they work the same way. As long as your Sch. C income is > $300k, they’re more or less the same. If it’s less than that, the SoloK will allow you to contribute more, but you’ll have to file a 5500 once your assets exceed $250k.