Self-directed retirement plans give you the control you want when investing your retirement funds.  Current IRS regulations allow self-directed retirement plans when structured properly.  Planning and guidance in this area gives you the peace of mind that your retirement investing is done in a manner that complies with these regulations and gives you the flexibility you desire to invest in alternative assets.

SELF-DIRECTED IRA (Individual Retirement Account)

A Self-Directed Individual Retirement Account (IRA) is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee, or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee/custodian will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the Self-directed IRA owner for the life of the IRA account. The custodian usually offers a selection of standard asset types that the account owner can select to invest in, such as stocks, bonds, and mutual funds. In addition, most custodians will also permit the account owner to make other types of investments. The range of permissible investments is broad, however, the IRS does place limits on the types of assets that may be invested in and on the types of transactions that may be carried out.

* It is important to understand the IRS rules and regulations pertaining to certain prohibited transactions related to these types of plans to avoid an inadvertant disqualification of the IRA.

SELF-ADMINISTERED SOLO 401K PLAN

A Solo 401K, also known as a Self Employed 401(k) or Individual 401(k), is a 401(k) qualified retirement plan that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s). The general 401(k) plan gives employees an incentive to save for retirement by allowing them to designate funds as 401(k) funds and thus not have to pay taxes on them until the employee reaches retirement age. In this plan, both the employee and his/her employer may make contributions to the plan. The Solo 401(k) is unique because it only covers the business owner(s) and their spouse(s), thus, not subjecting the 401(k) Plan to the complex ERISA (The Employee Retirement Income Security Act of 1974) rules, which sets minimum standards for employer pension plans with non-owner employees. Self employed workers who qualify for the Solo 401(k) can receive the same tax benefits as in a general 401(k) plan, but without the employer being subject to the complexities of ERISA.

A Self-Administered Solo 401k Plan requires the trustee (you) to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that a "qualified" trustee ensure that the plan assets are held in the name of the 401k plan at a financial institution on behalf of the 401k plan participants. Generally as the trustee, you will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue participant statements when needed and perform other administrative duties on behalf of the 401k plan for the life of the 401k plan.  The range of permissible investments for the 401k plan is broad, however, the IRS does place limits on the types of assets that may be invested in and on the types of transactions that may be carried out.

* It is important to understand the IRS rules and regulations pertaining to certain prohibited transactions related to these types of plans to avoid an inadvertant disqualification of the 401k plan.