What is the Pocket 401(k)?
Many investors believe they must use their retirement funds to buy bank CDs, mutual funds, or invest in the stock market. This is not the case. Most banks and financial institutions do not tell investors about alternative investments because these are not products they sell. They have no incentive to tell you about potentially lucrative alternative investments, such as real estate, and they are legally within their rights to withhold this information. As a result, you may not know the benefits of self-directing.
The main advantage of the Solo 401(k) is that you gain the freedom to invest your retirement funds in ways that suit your needs, interests and personal expertise. For example, investors who do not feel comfortable investing in the stock market can invest in assets they better understand.
The Pocket 401(k) Difference
How does the Pocket 401(k) transcend the way you invest? With the Pocket 401(k), you can use the free IRA Financial app to establish your account if you do not have a Solo 401(k), perform basic account maintenance and even make investments directly from your mobile device. Furthermore, our relationship with Capital One Bank allows our clients to establish a Solo 401(k) plan bank account without leaving the comforts of their home. In fact, IRA Financial is the only Self-Directed retirement custodian that can open a Solo 401(k) bank account for its clients. Our tax and ERISA specialists will complete any necessary bank documentation so you don’t have to do the work.
The Future of Self-Directing Starts Here
Join IRA Financial and experience the future of self-directing your Solo 401(k) Plan. The steps to establish the Pocket 401(k) is simple and straightforward and your assigned specialist will assist you along the way.
How to Get Started:
- Establish your Solo 401(k) retirement plan with IRA Financial Trust & Capital One online through the IRA Financial App.
- Notify your current custodian to rollover your retirement plan assets to the IRA Financial Trust tax-free with the app.
- The assets will be transferred to the new Solo 401(k) checking account and your assigned specialist will assist in opening the plan account with Capital One.
- As trustee of the Solo 401(k) plan, you can open the plan bank account at any local bank.
- Gain the freedom of checkbook control and make alternative asset investments how you want, when you want.
Discover the extraordinary benefits of using the Pocket 401(k):
- Perform all Solo 401(k) tasks digitally – whenever, wherever.
- Establish and maintain your plan quicker and more securely than ever before.
- You never deal with a bank – your specialist will open the plan bank account and complete all bank documentation on your behalf.
- On one digital platform, you can fund your account, perform basic maintenance and make investments tax-free.
Pocket 401(k) Investments
When you make an investment with the Pocket 401(k), it is the same as investing with any self-directed retirement plan (with the added benefit of simplicity). As a result, you must be aware of the Internal Revenue Code (IRC) prohibited transaction rules.
There are certain investments you cannot purchase with a retirement account and certain people you cannot engage with. Internal Revenue Code Sections 408 & 4975 prohibit Disqualified Persons from engaging in certain type of transactions to encourage the use of Solo 401(k) plans for the accumulation of retirement savings. Additionally, the rules prohibit those in control of the Solo 401(k) from taking advantage of the tax benefits for personal gain.
As you may know, self-directed retirement plans provide retirement account holders the ability to better diversify their retirement portfolio, invest in what they know, buy assets that act as a hedge against inflation, and generate tax-deferred or tax-free gains, in the case of a Roth Solo 401(k).
Aside from collectibles and certain transactions with disqualified persons, you are generally able to make any investment with the Pocket 401(k).
Below is a handful of the most popular Pocket 401(k) investment types in 2019 that you can purchase with retirement funds, while enjoying the benefits of tax-deferred income and gains. Or, in the case of a Roth 401(k), tax-free income and gains.
- Real Estate
- Investment Funds
- Private Businesses/Private placements
- Tax liens/tax deeds
Get in Touch
IRA Financial will help you invest your retirement funds in assets you know and understand in a tax efficient and cost-effective manner. We have helped over 14,000 clients from all 50 states invest over $4 billion in alternative asset investments. Are you ready to take control of your retirement funds? Invest in your future with IRA Financial’s Solo 401(k).
To learn how you can get started, contact IRA Financial directly at 800-472-0646 to learn more about the Pocket 401(k).