My 3 favorite solo 401(k) and self-directed IRA providers, so far

[Cooper Marcus]

When two different financial / tax advisors encouraged me to look at solo IRA or 401(k), I figured they both can't be wrong!

I spent the weekend visiting lots of websites and reading lots of content. I'm down to three providers that I think have the best educational content, the easiest ways of working with them, and good reputations:

* RocketDollar https://www.rocketdollar.com

* My Solo 401k Financial https://www.mysolo401k.net

* IRA Financial Group https://www.irafinancialgroup....

I'll post an update to this thread once I choose one and go though the account opening process.

[Justin Windham]

@Cooper Marcus

Between the self-directed IRA and the Solo 401k, the Solo 401k is usually the better choice if you're eligible. The Solo 401k requires self-employment activity, but will allow you to take participant loans while the IRA does not.

A few other Solo 401k benefits:

*​Compared to an IRA, Solo 401k contribution limits are roughly ten times higher.

*There is no custodial requirement for the 401k.

*You don't need the additional expense and administration of an LLC to have checkbook control.

*There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.

*A spouse can also participate in the same Solo 401k plan.

*The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.

*The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)