Self-directed IRAs

[Ben Erle]

Hello all,

I am a beginner just starting to get my feet wet in real estate investing. I was toying with the idea of rolling over my IRA (which was rolled over from my old company's 401(k)). I found this company Equity Trust, does anybody have any input on what these guys are like? Are there better companies out there to use? Thanks!

-Ben

[Mike McDermott]

@Ben Erle You should also investigate Solo 401Ks. There are many advantages to them over IRAs. I'll list a few.

1. Higher contribution limits - You'll be able to contribute more to your 401K than to your SD IRA.
2. No income limits - Your ability to contribute to IRAs is limited by your income. There are no income limits on contributions to 401Ks.
3. You become your own trustee - no third party administrators, no cumbersome requirements for transactions (letters of intent, etc.). No delays due to paperwork.
4. No custodial fees - although not large, they do add up.
5. Participant Loans Available - You can use your retirement money now without penalty. You name your own interest rate that you pay your own account. Money can be used for any purpose.
6. Interest on Participant Loan can be tax deducted - if used for BUSINESS PURPOSES
7. Unrelate Business Income Tax (UBIT) reduced or eliminated - If you use leverage inside your SD IRA, you will incur UBIT, which rockets to 35%. This tax is eliminated, for the most part, within a 401K.