SDIRA - self directed RIA questions

[Jimmy Ready]

Hey!

So I am about to get a job as a police officer (woop woop!) and I know one of the questions they will be asking me is how much do I want to put towards a 401k plan. Now as much as my parents would love for me to sock away 20-25% in that account thats just not me. 

I am not sure if my job will offer an option for a self directed IRA maybe? If not would I just put 0% towards a 401k and then open a SDIRA with another lender?

My question is before I dive in are you allowed to get a traditional personal loan when buying a property through a self directed ira or is it considered a corporation and therefore you need a commercial loan. 

I do not want to get commercial loans because I have heard on here that it is alot more difficult to get a loan through and LLC for example when compared to a personal loan. Any advice would be greatly appreciated.

Thanks

Jimmy

[Carl Fischer]

@Dustin Verley

The answer depends on the custodian. Some custodians will claim to be self-directed but will give you a list of items to choose from. That is not true self-direction, however many self-directed custodians deal exclusively in alternative investments. Many investors will have both a traditional IRA at custodian X that they use to invest in stocks, bonds, CD's etc... They will also have a self-directed IRA at custodian Y that they use to invest in something of their choosing, real estate, private placements, precious metals, notes etc...

Pulling funds out is the same in either IRA. You would take a distribution and follow all the distribution rules. IRA funds that are moved to a self-directed IRA are still IRA funds, thus it is not "pulling funds out" It is simply moving from one custodian to another.

The funds do not HAVE to stay in an IRA, but you would be subject to distribution taxes and possible early distribution penalty depending on your age.

The investments are all owned or held in the self-directed IRA. The SDIRA is responsible for all credits and debits incurred by the investment.

I would be happy to connect and answer any follow up questions you have