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A self-directed retirement plan is one where you choose the investments rather than having a fund manager or robot manage your portfolio. The plan still operates under the same IRS rules as any IRA or 401(k): same tax benefits, same contribution ...
Self-directed plans give you the same tax advantages as conventional retirement accounts, but with two critical differences: you control what your money is invested in, and you can choose from a much wider range of assets. This means real ...
The financial institutions that administer most IRAs have no incentive to tell you about self-directed IRA plans. Banks, brokerage firms, and mutual fund companies earn fees on the products they sell, which include stocks, bonds, funds, and ...
Quick Answer Checkbook control means you sign the contracts and write the checks for your retirement plan investments, without relying on a custodian. You achieve this by creating a special-purpose LLC or trust owned by your IRA, giving you direct ...
A custodian is the regulated financial institution that holds your IRA and reports to the IRS. A facilitator is a service provider that builds the legal structure giving you checkbook control over plan funds. The custodian holds your retirement ...
Complete our online application, provide a photo ID, and designate at least one beneficiary for IRA plans. Most plans are fully set up and funded within 2-4 weeks. Choose Your Plan Structure We offer different plan structures that suit different ...
You'll need a current photo ID such as a driver's license, state-issued ID, or passport. For IRA plans you will also need information for at least one beneficiary. Foreign nationals residing in the US will need to provide a permanent resident card. ...
Most plans are fully operational within 2-4 weeks, though the biggest variable is your funding source, not the entity formation itself. Entity formation timing The legal structure setup is straightforward. IRA Trusts and Solo 401(k) documents are ...
Yes. You can open your plan's bank account at any institution willing to open an account for your plan entity, and the account is yours to place wherever you want it. Most clients take the partner path instead. We prepare the account application as ...
Choose a simple, anonymous name that clearly identifies the trust as an investment vehicle. The best names balance privacy with banking clarity. What are the naming guidelines? Trusts are private contracts with no state filing requirements. This ...
Yes. You can add funds to your self-directed IRA or Solo 401(k) at any time through annual contributions or additional rollovers and transfers from other eligible retirement accounts. Two ways to add funds Annual contributions are a way to put new ...
Yes. An in-kind rollover moves an asset from one retirement plan to another without liquidating it first. This comes up when you're moving from direct custody to checkbook control, when you're dissatisfied with your current custodian's service or ...
Yes. A SIMPLE IRA can be self-directed and used to invest in alternative assets like real estate, private placements, and cryptocurrency, the same as any other IRA. SIMPLE IRAs do have a few special rules to be aware of, but none of them prevent you ...
Yes. A SEP IRA can be rolled over or transferred to a self-directed plan with no special restrictions. There is no waiting period and no limitation on how much you can move. SEP IRAs and Traditional IRAs are fully compatible. Funds can transfer ...
No. Self-Directed Plans does not impose a minimum funding requirement on any of its plans. You can establish a plan and fund it with whatever amount makes sense for your situation. That said, two practical considerations are worth keeping in mind. ...
No. A sale or exchange of property between a retirement plan and a disqualified person is a prohibited transaction under IRC Section 4975(c)(1)(A), regardless of the terms or price involved. !!! Why fair market value doesn't make it legal This is one ...
It depends on the plan type and the direction of the loan. Extensions of credit between an IRA and a disqualified person in either direction are always prohibited. A Solo 401(k) is the exception; it allows you to borrow from your own plan under ...
Sweat equity refers to performing personal labor or services on assets owned by your retirement plan. It is prohibited because IRC Section 4975(c)(1)(C) bars the furnishing of goods, services, or facilities between a plan and a disqualified person. ...
No. IRC Section 4975(c)(1)(D) prohibits any transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a plan. Personal use of plan-owned assets, in any form, is a prohibited transaction. The rule applies ...
Yes, a Solo 401(k) has an exemption from certain types of Unrelated Debt Financed Income (UDFI), which makes this the preferred plan for eligible real estate investors. IRC Section 514(c)(9) exempts qualified retirement plans, including Solo 401(k)s, ...
Every investment your plan makes must be titled in the name of the plan entity, not your personal name. The correct title depends on which plan structure you're using. Why titling matters Taking title in your own name is one of the most consequential ...
The golden rule is simple: money flows through the right channel at every stage. The right channel depends on what the transaction is: an investment move, or a move between you and the plan itself. Mixing these up is the most common source of ...
No. With a checkbook IRA, whether structured as an LLC or a trust, you execute investments directly, without submitting requests to or seeking approval from the custodian. That is the defining advantage of checkbook control. Why the custodian isn't ...
An accredited investor is a person or entity that meets SEC requirements exhibiting sufficient financial sophistication and resources to participate in private investment offerings that carry fewer disclosure protections than publicly registered ...
Yes, if you qualify as an accredited investor personally, your plan qualifies as well. The plan does not need to meet the income or net worth thresholds independently. How the look-through works by plan type The SEC's accredited investor definition ...
Receiving a 1099 or K-1 issued to your IRA or Solo 401(k) is normal. These forms require different handling depending on which type you received, but in most cases, no tax filing is needed. Why does my plan receive these forms? When an investment ...
Yes. Your IRA LLC, IRA Trust, or Solo 401(k) issues Form 1099-NEC to the service vendors it pays, under the same filing obligations that apply to any other business or individual making payments in the course of business. A missed or late filing ...
Most self-directed plans file nothing. Two situations create an obligation: the plan earns unrelated business income, or a Solo 401(k) exceeds the Form 5500-EZ asset threshold. Your plan type determines which can apply. When an IRA needs to file An ...
Why valuation is required The IRS requires annual reporting of IRA account values on Form 5498. Your custodian prepares this form but relies on you to report the value of assets they cannot look up on an exchange. For Solo 401(k) plans with assets ...
The IRS does not prescribe a specific format for IRA recordkeeping, but as the manager of a checkbook IRA, the responsibility for maintaining accurate plan records falls entirely on you. Why checkbook IRAs require more recordkeeping diligence In a ...
Taking money from a retirement plan before age 59½ triggers a 10% early withdrawal penalty on top of ordinary income taxes. Exceptions exist, and they vary depending on whether you have an IRA or a Solo 401(k). Why the IRS imposes the penalty The IRS ...
Required Minimum Distributions are annual withdrawals the IRS requires you to take from certain retirement accounts once you reach a specified age. They exist because most retirement accounts were funded with pre-tax dollars, and the IRS eventually ...
If you fail to take a Required Minimum Distribution by the applicable deadline, the IRS imposes a 25% excise tax on the amount you should have withdrawn but did not. That shortfall is also subject to ordinary income tax, since the distribution itself ...
A Roth qualified distribution is one that is completely tax-free and penalty-free. To be qualified, a distribution must meet two requirements simultaneously: the five-year rule must be satisfied, and the distribution must occur under one of three ...
Taking a distribution from an IRA LLC is a two-step process. Funds must first move from the LLC back to the IRA custodian, and then a separate distribution request is made to move funds from the IRA to you personally. Step 1: Send funds from the LLC ...
Yes, retirement accounts carry meaningful creditor protections, but the protections work in two distinct directions. Plan-level protections, such as ERISA and federal bankruptcy law, shield your retirement assets from creditors pursuing you ...
Yes. Cash held within your self-directed plan is FDIC insured. Non-cash investments, such as real estate, cryptocurrency, and private equity, are not covered by FDIC insurance and are not insured by any government agency. Cash held at IRA Resources ...
Self-Directed Plans never holds, receives, or controls client funds at any point. Our role is to set up and maintain your plan structure. Your money stays in accounts you control. Where your funds are held When you fund an IRA-based plan, your money ...
No. The IRS does not approve, endorse, or review any retirement plan investments. Any advertisement or solicitation claiming an investment is "IRS approved" or "IRA approved" is misleading and should be treated as a red flag. What the IRS actually ...
Self-directed retirement plans give you direct control over your investments. That control is the point, but it also means there is no intermediary reviewing the investments you choose for red flags. You are the gatekeeper. Knowing what to watch for ...
Your beneficiary designation decides who inherits your retirement account, and you can name virtually any person or entity for that role. There are no IRS restrictions on who you choose, so the risk here is not picking the wrong beneficiary, it is ...
Primary and contingent beneficiaries represent two tiers of inheritance for your retirement account. Primary beneficiaries inherit first. Contingent beneficiaries inherit only if no primary beneficiary is available to receive the funds. Primary ...
There is no IRS limit on the number of beneficiaries you can name for either an IRA or a Solo 401(k). You can designate as many primary and contingent beneficiaries as your situation requires. IRA accounts: a practical note The IRA custodian ...
Naming beneficiaries for your IRA or Solo 401(k) is not technically required, but skipping this step is unwise. If you die without a valid beneficiary designation on file, your account passes to your estate by default. Estate inheritance is the least ...
Yes. You can update your beneficiary designation at any time. The most recently completed and submitted form always controls, regardless of what any prior form or your will may say. IRA accounts To change your IRA beneficiary designation, submit an ...
Self-Directed Plans LLC is a plan facilitator and plan document provider for self-directed retirement accounts, including IRA LLCs, IRA Trusts, and Solo 401(k) plans. Based in Seattle, WA, the company was founded by leaders who have spent two decades ...
Self-Directed Plans LLC provides the plan documents, entity formation, and IRA account setup that give you checkbook control over your retirement savings. Paired with a comprehensive education platform, the goal is straightforward: put you in a ...
Self-Directed Plans uses IRA Resources as its exclusive IRA custodian partner. IRA Resources is a registered trust company that has been operating since 1996, headquartered in South Dakota and regulated by the South Dakota Division of Banking, with a ...
No. Self-Directed Plans LLC does not offer investments, recommend specific assets, or provide tax, legal, or investment advice. We build the vehicle, you operate it Self-Directed Plans LLC provides the compliant plan structure that gives you full ...
Self-Directed Plans uses MapleMark Bank as its banking partner for plan bank accounts. MapleMark is an Oklahoma state chartered bank and member of the Federal Reserve, headquartered in Tulsa with branches in Tulsa and Dallas, Texas. In business since ...
There are two types of fees to understand: a one-time setup fee when you establish your plan and a monthly administrative subscription that continues for the life of the plan. A full schedule of current fees is available on our Plans page. Our fee ...
It depends on the fee type. Some fees must be paid personally, some must be paid from the plan, and others give you a choice. Setup fee: paid personally The plan setup fee is always paid personally, out of pocket. At the time you sign up, your plan ...
Your monthly subscription covers two things: the IRA Resources annual recordkeeping fee for custodial services and access to Self-Directed Plans support services. Both are included in a single flat monthly charge. IRA Resources annual recordkeeping ...
Your monthly subscription covers two things: ongoing plan document maintenance and access to Self-Directed Plans support services. Plan document maintenance A Solo 401(k) is governed by a formal plan document that must remain compliant with current ...
Our fees run at roughly half the industry average. That gap is the result of deliberate choices about how we build and deliver our service, not a reduction in quality. Technology does the heavy lifting Most self-directed plan providers rely on manual ...