From your previous employer 401k to your new Self-Directed IRA

You’ve changed jobs and now have funds stuck in the 401k with your previous employer. 

You wish to make a better return and have more control over your retirement funds. What can you do?

I have a very good friend that has a 401k from a previous employer of more than a decade ago, and as many people do, he doesn’t know what is happening with that retirement account. He wants to have more control over his retirement account and maximize the account’s returns.

Coincidently, I had attended several conferences where the good guys from NuView IRA and Quest IRA spoke about how few people know about SDIRA, and how a previous employer’s 401k can be rolled over into an SDIRA.

First, you have to choose a custodian. A custodian is a company like Nuview IRA, Quest IRA (or from many others out there) that holds your retirement account. 

To roll over your previous employers 401k to a Self-directed IRA you would have to talk to customer service in the custodian you chose. They will hold your hand thru the process. The time it takes to roll over the account will depend on how fast your previous employer and the 401k does their part. It can take from weeks to a month or two.

I gave my friend the contact information of the person who opened my SDIRA account. I will follow up with him in a few weeks to see how the process is going for him.

You might want to know the difference between a 401k and a self-directed IRA. There are many types of SDIRA accounts you can choose from, the benefits roam from tax-deductible contribution to tax-free returns. In broad terms, this is how a 401k and an SDIRA work:

401K: You have the option of selecting from Stocks, Bonds or Mutual funds, but you are only allowed to pick the ones that are within your company’s 401k plan.

Self-Directed IRA You have the option of investing in nonperforming notes, stocks, bonds, mutual funds, real estate and many other investment options.

You have to inform your custodian of every transaction and direct them to disburse payments. All returns have to go directly into your IRA account.

There are rules in place that prevent an account holder from benefiting from his SDIRA account. The custodian can help ensure that you stay on track and avoid situations with our good old friends from the IRS.

Your financial advisor or customer service from the custodian will guide you on the pros and cons of each type of self-directed IRA account and which is better for you.

If you want me to send you the contact information of the person who helped me set up my personal SDIRA account, please send me an email.

If you want to know about the type of deals we have going with our JV partners, let me know.

Disclosure: I don’t have a business relationship with any SDIRA custodian. I hold a personal SDIRA account and I have JV agreements with Self-Directed IRA account holders.