Self-Directed IRA question

[Dennis Hertzler]

Ok, I have read a lot of posts on this subject and I am still unclear on what you can and can't do. But, it appears that I may not be able to do what I was hoping to do...

Here is the scenario: I have recently "retired" from my job but I am not really retired (age 56), I still need to make a significant income. I have a 403b and a pension fund payout that I will be able to roll over into something (what?). The amount here is enough that if I somehow had access to it I would be able to purchase SFHs to flip that are at our areas median price range of about $350k. I would need most of the profit from these flips for living expenses but could "share" the profits with the fund. My overall strategy is to concentrate on one larger deal at a time and not on smaller deals.

So is there anyway to use these funds for this purpose or do I need to find another solution?

Dennis

[Mark Nolan]

@Dennis Hertzler

@Dennis Hertzler

Here is some more information on how the ROBS 401k works.

• A new C-corporation is established.

• Corporation sponsors a new 401k/PSP.

• The IRA funds are transferred to a new brokerage account opened for the 401k/PSP.

• The new franchise corporation issues stock shares to the 401k/PSP for the benefit of the franchisee.

• The franchisee must be an employee of the franchise business and he or she may take a reasonable salary.

• The franchisee’s family members may be employees of the franchise business and receive reasonable compensation for their services.

• To the extent that the corporation generates profits and elects to distribute those profits to the owners of the business, the percentage of the profits associated with the shares held in the 401k/PSP will flow back to the 401k/PSP brokerage account.