BACKGROUND: Trying to decide between SD IRA and solo 401k.
I am a working individual with a 401k from a previous employer that I want to use.
Primarily looking at buying Real estate for renting out.
QUESTION: The 401K with check writing option looks much easier.
Am I eligible to do it ?
Thanx
Nitin U. in NJ
ANSWER: Generally the solo 401k plan is more advantageous than a self-directed IRA LLC for the following reason:
Unlike an IRA, you don’t need a financial
institution to serve as custodian of the solo 401k plan. The IRS has detailed
that a business owner whose company sponsors the solo 401k can act as the trustee of
his or her solo 401k and have responsibility over the solo 401k plan’s assets. Therefore,
one can serve as trustee of his or her solo 401k and safe keep the real estate documents
(e.g., recorded deed) in connection with real estate rentals.
Following information will help you
determine if you qualify for a solo 401k or not.
No comments:
Post a Comment