Take Advantage of the Self-Directed 401(k) Today
Your Self-Directed 401(k) has the same rules as any other 401(k) Plan but gives you the flexibility to make any type of investment you wish. Start investing in:
- Real Estate
- Precious Metals
- Tax Liens
Nine Reason to Choose IRA Financial Group
Always Make Sure You Are Working With a Tax & ERISA Professional
Working with an experienced tax & ERISA professionals when looking for a Solo 401(k) Plan provider is crucial in ensuring that your plan will be properly setup as well as remain in full IRS compliance.
Open Architecture Self-Directed 401(k) Plan Is the Way to Go
IRA Financial Group offers an open architecture Solo 401(k) Plan that allows you to make any IRS approved investment without requiring the consent of a custodian. As trustee of your Self-Directed Solo 401(k) Plan, you will have “checkbook control” over your plan funds and will have total control over plan assets.
Take Advantage of Your Right to Borrow up to $50,000 from Your Plan
IRA Financial Group’s Solo 401(k) Plan allows plan participants to borrow up to $50,000 or 50% of their account value (whichever is less) for any purpose, including paying credit card bills, mortgage payments, personal or business investments, a car, vacation, or anything else.
Be Sure You Have a Roth Option
IRA Financial Group’s 401(k) Plan contains a built in Roth sub-account which can be contributed to without any income restrictions.
Ongoing Tax & 401(k) Plan Support is a Must
As you begin administering your 401(k) Plan, whether it involves making employee deferral or profit sharing contributions, making a non-traditional investment, taking a plan loan, or considering a Roth conversion, you will want to be able to have the ability to consult with a specialized 401(k) Plan tax professionals and get specialized tax and ERISA advice based on your particular retirement or tax question.
Take Control of Your 401(k) Plan from the Plan Provider
With IRA Financial Group’s Self-Directed 401(k) Plan, you can hold the plan assets at the bank of your choosing and gain “checkbook control” over the funds. With IRA Financial Group, making an investment is as easy as writing a check.
Stay Away from Plan Providers Who Outsource Their Plan Maintenance Services
IRA Financial Group offers all of its 401(k) Plan clients direct access to its in-house retirement tax professionals and CPAs regarding maintenance or administrative questions concerning the plan. Whether it’s answering a question about a plan feature, investment, an update in the law, or with help completing the IRS Form 5500-EZ, you will work one-on-one with an IRA Financial Group retirement tax professional and CPA who are familiar with your plan and retirement goals.
Stay Away from Excessive Annual Fees
Why pay excessive annual administration fees to a plan provider who will not be offering you or your plan any value or services. Even if your 401(k) Plan has in excess of $250,000 of plan assets, the IRS Form 5500-EZ is quite simple to complete and should not be too costly.
Don’t Take Tax Advice from a Salesperson – Talk Directly with a 401(k) Plan Tax Professional or CPA
Make sure you are only receiving plan related advice or information from a specialized 401(k) plan tax professional. Too many times, plan participants have made improper plan contributions or invested in a prohibited transaction because they were mislead by a plan provider representative that was not qualified to provide proper tax advice regarding the unique features of the 401(k) Plan.
Benefits of Self-Directed 401K
No need to establish an LLC
LLCs can be costly, especially depending on which state you live in. With a Solo 401(k), the trustee (you) can make investments without the need of an LLC.
Strong Creditor Protection
Most states offer better creditor protection for this form of retirement plan than a Traditional IRA. Additionally, Individual 401(k) Plan assets are protected against creditor attack in a bankruptcy proceeding.
Roth After-Tax Benefit
You have two formats with a Solo 401(k): pre-tax, or Roth (after-tax). With a Traditional IRA, you only have the option of pre-tax. With the Roth option, your money can grow in its retirement account tax-free. And of course, when you withdraw at retirement, you pay no additional taxes.
Nonrecourse Leverage Exception
You can invest in your own business and real estate investments without penalty. By using nonrecourse funds, you won’t trigger the Unrelated Debt Financed Income Rules and the Unrelated Business Taxable Income (UBTI and UBIT). This exception doesn’t apply to IRAs.
Save More with High Contribution Limits
The total annual contribution for a self-directed Solo 401(k) is $56,000 (under 50) in 2019 with two kinds of contributions: – Employee salary deferral contribution: Employees can contribute up to $19,000 – Employer profit-sharing contribution: The annual limit is 25% of the employee’s pay, or 20% if you’re self-employed – Catch-up contributions allow individuals 50 and older to contribute up to $62,000 to a self-directed Solo 401(k)
“What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group.”
“Adam Bergman…gets several calls a day from clients like McDermott looking to invest their retirement funds in real estate. ‘Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties.'”
“Jeff Brown…transferred roughly $50,000 from his workplace 401(k) to purchase homes to fix up and sell…He uses a self-directed IRA that he set up through IRA Financial Group in Miami Beach.”