Plan Investing
31 articles
General
6 articlesHow should I title plan assets?
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 ...
What is the golden rule of money flow?
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 ...
Do I need custodian approval for investments?
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 ...
What is an Accredited Investor?
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 ...
Does my plan qualify as an accredited investor?
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 ...
Can I still invest in publicly traded equities and funds?
Yes. Stocks, bonds, ETFs, and mutual funds are all permissible investments for a self-directed IRA LLC, IRA Trust, or Solo 401(k). Holding conventional securities alongside alternative assets in the same plan is entirely possible. Whether it's the ...
Real Estate
14 articlesWhat is the workflow for buying real estate?
Your plan entity is the buyer at every stage from the first offer through the final closing. The checklist below gives you the key action and the critical compliance point for each phase of the transaction. Transaction checklist Phase Action Watch ...
How do I sign contracts as manager or trustee?
Two things must be true on every contract your plan enters: the entity is listed as the contracting party, and you sign in your designated role, not as an individual. Getting either of these wrong can create a prohibited transaction or title problem ...
How do I handle earnest money deposits (EMD)?
The earnest money deposit must come from your plan entity's bank account. No exceptions. Why personal funds are not an option Paying the EMD from your personal funds, even with the intention of reimbursing yourself later, constitutes an extension of ...
Can my plan use a mortgage to purchase real estate?
Yes. Your IRA or Solo 401(k) can use financing to purchase real estate. The ability to bring leverage into a tax-sheltered retirement plan is one of the most powerful wealth-building tools available to self-directed investors. Your plan can extend ...
What is a non-recourse loan?
A non-recourse loan is one where the lender's only security is the collateral - typically the property itself. If the borrower defaults, the lender can seize the collateral but has no claim against the borrower's other assets. No personal guarantee ...
Can my plan partner with others to purchase real estate?
Yes. Your plan can co-invest with other parties to purchase real estate in a variety of structures. Partnering allows your plan to access larger deals, share risk, and leverage professional management without committing the full purchase price from a ...
Can my plan buy foreign real estate?
Yes. A self-directed IRA or Solo 401(k) can invest in real property located outside the United States. For investors with specific knowledge of a foreign market, through prior residence, family connections, or professional experience, it can be a ...
How do I invest in Tax Liens & Deeds?
Your plan bids at a county tax sale the same way any other bidder does, with one difference that governs every step: the plan entity is the buyer, and every dollar in and out moves through the plan's own account. Getting the sequence right matters ...
Do I need an LLC for tax lien & deed investing?
No. Tax lien and deed investing can be executed directly through an IRA Trust or Solo 401(k) trust without an LLC. Whether an LLC makes sense depends on whether your plan ends up holding real property. For lien-focused investing, a trust is ...
Do I have to hire a property manager?
No. You can self-manage a plan-owned rental property. Whether to hire a property manager or handle it yourself is a practical decision, but IRS rules create an important boundary on what self-management actually means for a retirement plan. What ...
How do I pay expenses and receive rent?
All expenses are paid from the plan entity account. All income is deposited to the plan entity account. Those two rules cover the full picture. Paying expenses Write a check, use the entity debit card, or wire funds directly from your plan entity ...
What kind of property insurance does my plan need?
Plan-owned real estate requires the same types of insurance as any investment property: hazard coverage and liability coverage. The critical difference is that the policy must be issued in the name of the plan entity, not in your personal name. The ...
Can my plan buy raw land?
Yes. An IRA or Solo 401(k) can purchase raw land, agricultural land, timber land, and similar undeveloped parcels. Land is a real asset that can hold value through economic cycles and appreciate over time, particularly as development expands or land ...
What if I find a deal before my plan is ready?
The short answer: do not use personal funds or sign a contract in your own name. Once you do either, that property cannot be acquired by your plan. IRS rules prohibit any direct or indirect transaction between a retirement plan and a disqualified ...
Private Placements
4 articlesHow do I invest in real estate syndications?
Investing in real estate syndications is a straightforward process, well suited to self-directed retirement plans. Syndications are among the most plan-friendly alternative investments available: they are passive by nature, professionally managed, ...
Can I invest in private equity or startups?
Yes. A self-directed IRA or Solo 401(k) can invest in privately held companies, including startups, established private businesses, and private equity funds. Your plan purchases membership units, partnership interests, or shares in exchange for ...
How do I complete a subscription agreement?
Subscription agreements vary in format across sponsors and deal types, but follow a consistent structure. The core task is the same in every case: your plan entity is the investor, you are the authorized signer, and all representations about investor ...
Can my plan invest in crowdfunds?
Yes. Real estate crowdfunds, note funds, private equity funds, and similar pooled investment platforms are all accessible to self-directed IRAs and Solo 401(k) plans. The mechanics are straightforward: the plan entity opens an account on the platform ...
Digital Assets
3 articlesCan I invest in Bitcoin and cryptocurrency?
Yes. A self-directed IRA or Solo 401(k) can invest in Bitcoin, Ethereum, and a broad range of digital assets. The IRS confirmed in Notice 2014-21 that virtual currencies are treated as property, making them a permissible asset class for retirement ...
Can I use a hardware wallet?
Yes. A hardware wallet is a permissible and often preferable storage method for plan-held cryptocurrency. The phrase "not your keys, not your coins" captures the core argument: exchange-hosted wallets leave your assets in the custody of the exchange. ...
Does staking or mining create UBIT?
Mining IRS Notice 2014-21 establishes that cryptocurrency mining is a trade or business activity. Mining involves the creation of new assets through computational work. The IRS treats it similarly to manufacturing, not passive investing. When a ...
Private Lending
4 articlesHow do I structure a promissory note?
Private lending is one of the more straightforward investment strategies available to a self-directed plan. Your plan acts as the lender, a borrower receives capital, and the note documents the terms of repayment. With checkbook control, you can fund ...
What is the difference between secured and unsecured lending?
The distinction is straightforward: a secured note is backed by collateral, and an unsecured note is backed only by the borrower's promise to repay. That difference has significant implications for your risk as a plan lender. Secured lending A ...
Do I need an LLC for private lending?
No. Private lending can be executed directly through an IRA Trust or Solo 401(k) trust without an LLC. For most note investments, either type of trust is a capable and efficient vehicle with no additional entity layer required. When the trust is ...
Should I use a note servicer?
Whether to use a note servicer depends on your level of lending expertise and the number of loans you intend to issue through your plan. First-time lenders will benefit from the compliance infrastructure and process expertise a servicer provides. ...