IRA LLC versus Solo 401K versus SDIRA

[Ria Gupta]

I am in the process of figuring out the pros and cons of IRA LLC versus Solo 401K versus SDIRA to lend funds out of, for a short term real estate project. Can someone provide insights or resources?

Thanks,

Ritu

[Dmitriy Fomichenko]

@Ria Gupta

In most cases Solo 401k is superior vehicle (if you are eligible for it). Here are some of the advantages:

- Contribution limits 10X higher than an IRA

- No need for a custodian 

- Checkbook control with out the need for an LLC

- Lower cost to set up and maintain 

- Ability to take participant loan 

- Roth contributions are not subject to income limits

- Exempt from UBIT on leveraged real estate

- and more!