Self Directed IRA to fund deals!

[Mark Turney]

Has anyone in the Tulsa area used self-directed IRA's to fund their deals? I would like to meet with a local rep of a compnay that offers SD IRA's to get information on exactly how they work.

[Justin Windham]

@Mark Turney

Self-directed accounts come in both IRA and 401k formats. One of the big differences is that a self-directed 401k (Solo 401k) has eligibility requirements. You must have self-employment activity and no full time W2 employees.

If you are eligible for the Solo 401k, it generally makes sense to use that option for several reasons. Compared to an IRA, Solo 401k contributions limits are roughly 10x higher and there is no custodial requirement for the 401k. You can take participant loans from the plan, you don't need the additional expense and administration of an LLC to have checkbook control, and there is a built in-Roth component. A spouse can also participate in the same plan, there are additional tax benefits compared to an IRA, and there is generally greater privacy. Finally, the plans are often quicker to setup and cost less money over time especially compared to most IRA LLCs.