My wife will soon be changing employers

 

Good afternoon, my wife will soon be changing employers. I'm considering opportunity for her to open Self-Directed 401k and have a few questions.

QUESTION 1: Does her current plan qualify for your Self-Directed 401k product since it is a 403b rather than a 401k?

QUESTION 2: Can I set up her new 401k at new employer in this fashion as well?

Thanks,

Marc

ANSWER to Q1:  Self-Directed 401k also known as Solo 401k or Individual 401k can be funded by a transfer/rollover from a 403(b) in addition to other retirement plans such as 401(k) from former employer, Defined Benefit Plan, Government 457(b) plan and all IRAs except for Roth IRA. For full list of retirement plans that may be rolled over to Solo 401k visit Consolidating Retirement Plans.

ANSWER to Q 2: Since 401k plans are offered by employers, chances are her new employer offers 401k plan to their employees.  However, her new employer probably doesn't offer Self-Directed 401k, which refers to 401k plans that allow the 401k participants to invest their 401k funds in alternative investments such as rental properties, fixer-uppers, condos, family homes, as well as precious metals, trust deeds, tax liens, private placements, etc.   

On the other hand, if your wife is starting her own business and will not have any full-time employees, she can open Solo 401k with a Solo 401k provider like us and transfer her 403(b) to it as well as make ongoing annual contributions from earnings generated from her self-employed business. She could then invest her Solo 401k in alternative investments such as real estate in addition to the alternative investments mentioned above, because as a Solo 401k provider our Solo 401k plan document allows for investing in alternative investments.