The IRS rules regarding the use of IRA or 401(k) funds for non-traditional investments are intended to ensure that all benefits from such activities accrue to the plan, rather than the individual. Put simply, because this money is given special, tax-sheltered status, you cannot personally benefit, other than by knowing that you are growing your retirement savings.
Understanding the rules governing IRA funds is critical to your ability to get the most out of your plan without creating exposure to tax penalties, but this can be a difficult prospect. IRS guidelines are not exactly notorious for clarity and easy comprehension. At Safeguard Advisors, one of our key roles is to work with you to make sure you are fully informed about the rules and how they apply to your intended investments.
This section of our blog is designed to help you navigate the often complex IRS rules and compliance guidelines and ascertain how they will affect your self-directed IRA or solo 401(k) plan investment activities. Articles in this category cover topics such as how to avoid prohibited transactions, effectively managing your required minimum distributions (RMDs), handling Roth IRA conversions, and more.
Most of us think about IRA and 401(k) retirement plans as being completely tax-sheltered. So many investors are shocked when they learn that this isn’t entirely true. Some types of investments made within an IRA can create a tax liability…
Investing in real estate can be expensive. For many investors who want to diversify their retirement savings into assets such as rental property, access to capital can be a barrier. We’re often asked whether it’s possible to combine IRA and…
A self-directed IRA is unique in having a different transaction model, and opening up the possibility to invest in to a diverse range of assets such as real estate, private placements, and more. When it comes to the basic concepts…
One of the benefits of the Solo 401(k) is the ability to borrow from the plan. As a qualified employer 401(k), a Solo 401(k) can make a participant loan — just as with any larger employer 401(k) style plan. For…
An Inherited IRA is an account structure that allows a beneficiary to manage an inheritance that was passed down to them through an IRA or 401(k) account. If you’ve inherited an IRA as a beneficiary, it’s up to you to…
If you qualified as a self-employed entrepreneur and your business has no full-time employees, the Solo 401(k) is a fantastic self-directed retirement plan option. A Solo 401(k) isn’t really a distinct type of retirement plan. It’s a specific implementation of a qualified…
Building your retirement savings with your self-directed IRA or Solo 401(k) is not just about how you invest. Making new contributions to your retirement plan is a key to creating long term wealth with these tax-sheltered vehicles. As we approach…
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One of the principal benefits of self-directed IRA and Solo 401(k) accounts is their flexibility, which allows for investments in diverse asset classes. With this added flexibility, however, comes added responsibility. It is important to understand IRS guidelines for the…
Looking to diversify your investment holdings? Consider a self-directed IRA. Self-directed IRAs and 401(k)’s can include atypical investments, such as real estate, private placements, trust deeds, and even gold and silver coins. If you are considering a self-directed IRA plan,…
Self-directed IRA and Solo 401(k) plans have a great amount of flexibility when it comes to the types of assets in which you can use them to invest. In fact, there are very few types of investments that are excluded…
