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Self-Direct Your Retirement – Here’s How to do it!

self-direct your retirement

As you grow older, you realize it becomes more important to invest in your future. This can be with retirement funds, buying a house or purchasing other assets. Have you ever tried to make an investment and was held back because, essentially, you don’t have control over your IRA or retirement plan? You no longer have to worry about that. With the Solo 401(k) plan, self-directed IRA and self-directed IRA real estate, you have complete control over your investment decisions. You can make decisions when you want, tax-free and without custodian consent.

Self-Directed Retirement Plans

You may be asking yourself what exactly are these retirement plans, and what benefits do they offer me? This is a good question if you’re an IRA investor who has been limited to traditional investments, like stocks, bonds, mutual funds and ETFs.

The Solo 401(k) Retirement Plan

The Solo 401(k) plan is not a new plan. It’s similar to a traditional 401(k) plan, with a significant difference: it only covers one employee. The rules and requirements are the same as every other 401(k) plan, but is better suited for:

  • Independent contractors
  • Consultants
  • Any sole proprietor

The Solo 401(k) plan offers the same benefits as the Self-Directed IRA LLC but you don’t have to create an LLC or hire a custodian. This plan lets a self-employed business owner use his or her retirement funds to make any type of investment tax-free without requiring a custodian’s consent. You can also make higher contributions and borrow $50,000 for any purpose – this is completely tax and penalty-free.

The Self-Directed IRA LLC

For 35 years, the Self-Directed IRA, Self-Directed Roth IRA, and Self-Directed IRA real estate have been known as the “Checkbook Control” structure. These structures have become popular for gaining total control over investments you make with IRA funds and are tax-free.

It’s fairly simple to establish a Checkbook Control LLC. It involves just a few steps.

  1. Establish a Limited Liability Company (LLC) that the IRA account owns and you (IRA account holder) manages
  2. Transfer IRA funds from your current custodian to the new LLC bank – this gives you “checkbook control” over your IRA funds
  3. Find an investment and write a check from your LLC bank account or wire funds on the spot – the investment is yours!

Investment Opportunities

You can choose any of the self-directed retirement plan and greatly benefit through an increase of savings. Additionally, you gain control over your IRA funds to make a wider range of investments. While most traditional institutions limit your investments to traditional assets, a true self-directed retirement plan will allow you make the following most popular investments, and much more:

  • Real estate
  • Precious metals
  • Tax liens
  • Private businesses
  • Cryptocurrencies

Not only will you be able to make these investments tax-free, but you also can make them when you want without having to get consent from the custodian. It’s important to note, you can still make traditional investments if you feel confident in Wall Street.

Prohibited Transactions

You have a world of investment opportunities to choose from, however the IRC (internal revenue code) prohibits IRA holders from making two types of investments: collectibles and life insurance. Additionally, you cannot make transactions with your IRA and a disqualified person. Learn more about the common prohibited transactions investors make with their self-directed IRA.

Get in Touch

We are the leaders in helping IRA holders self-direct their retirement funds. Let us help you. Contact IRA Financial Group directly at 800-472-0646. You can also contact one of our specialists. We look forward to hearing from you.

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