The Short Version: Do you want a Self-Directed IRA or Self Directed 401k?
Most people come to our site looking for a checkbook controlled IRA… but self-directed IRA and 401ks have very different rules. Rules that determine your investment options and future tax bill. It’s your retirement; you deserve the best account for you.
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Self Directed IRAs (or ‘checkbook control’ IRAs) have the following advantages:
- Anyone can have one. It doesn’t matter if you have employees or not.
- $5,500, or $6,500 if you’re over 50, from nearly any income source can go into it.
- Any kind of retirement money can end up in some kind of IRA.
Self Directed 401ks (or ‘checkbook control’ 401ks) have the following advantages:
- More than one person can be in a Solo 401k, and they can safely pool their money and invest together in the same asset.
- You can put both Roth and Traditional money in it any given year, regardless of your income.
- UBIT’s DFI doesn’t apply to real estate holdings. In plain English that means that leveraged money (like using a mortgage) isn’t taxable like it is in an IRA (even in a Roth IRA). No 990 forms to fill out like an IRA would either.
- You can borrow half your account, up to $50,000, whenever, for whatever, with no taxes. It’s possible to borrow even more.
- Accidents aren’t necessarily the end of the world. The bottom line is 401ks are much safer, with much lower (if any) penalties, and are less troublesome to operate.
- $50,000+/yr can go into the plan per person.
The first things we hear after people read that comparison:
…But my money is already in an IRA?
That’s totally fine. Virtually any kind of retirement account can be rolled over into a Solo 401k. The only exceptions are Inherited and Roth IRAs. We offer those too; and ours have significant safety advantages over most. It’s your life savings. Safety should be a major factor.
Curious about rollovers? We’ve made an easy to follow chart for you at the bottom of this page.
Can I have a Solo 401k?
I have a job and a 401k already…
I have employees…
I make a lot of money…
I don’t make much money…
Almost everyone can. At least 75% of the people we talk to can but didn’t think they could when they called. So a quick 5-10 minute call can answer the question for you very easily.
The general idea is that if you have any income that you earn, or try to earn, outside a regular 9-5 job working for someone else, then you can probably have one.
- Freelance at all? You bet.
- Have an business online? Perfect.
- Realtor? Financial Planner? Do something else that gets you a 1099 at the end of the year? Excellent.
The rules are broad. Only a few people that can’t have one and there are alternatives for them.
Call 888-595-7313 or email firstname.lastname@example.org to setup a 20 min. consultation. It’ll be the most informative conversation you’ve had about your options. We’ll answer any questions and provide actionable investment options and examples. We guarantee it.