Self Directed IRA questions

[Jose Hooker]

I am in the process of transferring my 401K funds to a SDIRA. I understand I can transfer my funds to a SDIRA. Do you know someone locally who I can get in touch? I am looking to use the cash to purchase my first property but I have questions about the process.

Thank you

Jose

[Brian Eastman]

@Jose Hooker

With self directed IRA plan, quality of service and the correct plan offerings for your needs will be more important than geography in selecting a provider.

There are Self-Directed IRA Custodians that can hold accounts and process that account's investment into non-traditional assets such as real estate. In that model, they will hold the funds and process all transactions, sign all documents, receive all income, etc. on behalf of your IRA. You tell them what to do and they do it. This can be cumbersome for running a more active or diverse portfolio such as with rental property.

There are about 3-4 dozen such firms across the country, including some in Florida.  Most will have the word Trust in their name since they are generally depository trust institutions.

Alternately, you can look into a Checkbook IRA LLC or Solo 401k plan. These plans will put you directly in control of the funds and you can operate out of a bank account of your choosing under the umbrella of the plan. These models eliminate the processing layer of the custodian, and the paperwork, delays and fees associated with that. There are a handful of firms that provide these options, and a pretty wide range of quality of service/fees. There is a good bit of information here on BP on and by such firms.