Self directed 401k plan

[Jason Staine]

Hi BP,

We are looking to rollover a sep IRA and a roth IRA into a self directed 401k or solo 401k. Had anyone used companies like etrade or td ameritrade? If not what other options would you reccomend

[Brian Eastman]

@Kyle Schlosser

If you have a current IRA or 401(k) with a mainstream financial services firms: Prudential, Schwab, E*Trade, Fidelity, etc. It IS NOT truly self-directed. These firms sell publicly traded assets only.

If you have a truly self-directed IRA, you will know. It is not a "sneaky unpublished option" of a mainstream IRA.

Rather, a truly self-directed IRA or 401(k) will be offered by a firm that specializes in such options. The retirement plans themselves are the same with respect to timelines, beneficiaries, tax treatment, etc. The business model of the plan is what changes, so as to facilitate the more individualized types of transactions that take place in assets such as real estate, privately held companies and other "non-commoditized" investments. Keep in mind, most self-directed plans can also hold conventional stocks, funds, etc. The model is "invest in what the IRS rules allow for", not "invest in what we sell and make commissions on".