Self directing IRA money using QRP- Qualified Retirement plan

[Hament Raju Mahajan]

Currently I use Self Directed IRA custodians (Pensco and others) to be able to use my IRA funds for investment in Secured Notes. At times it becomes a time consuming effort to deploy funds to a deal.

I am setting up a QRP where the plan to be attached to my LLC and I could check book control control the IRA funds .

Would like to get comments from some one who has done QRP or know about it. Setting up QRP makes all the sense with the control one has and it seems cheaper to as compared to having a independent IRA custodian , what is the down side to it?

[Dmitriy Fomichenko]

@Hament Raju Mahajan

if you setup a truly self-directed Solo 401k (which is a Qualified Retirement Plan) - it will be much more flexible and more powerful compared to a SD IRA. There are several major advantages, I describe them in this blog:

www.biggerpockets.com/blogs/2810/blog_posts/21298-...

You are correct, that with this new structure you don't need a custodian - this mean that all custodian fees will be eliminated and you don't have to go get approval for each transaction.

Also, Solo 401k uses trust to hold assets of the plan - therefore underlying LLC that is used with the IRA to gain the checkbook control is not needed. This equates to additional savings and simplified structure.

Hope this helps but if you have further questions go ahead and ask.