The Checkbook IRA – Individual Retirement Accounts
Consider the possibility for your self-directed IRA to own an LLC that is managed by you. Commonly referred to as a checkbook IRA because you determine how much of your IRA assets are transferred to the LLC checkbook. This provides check writing privileges over your IRA funds held in the LLC, giving you the ability to take advantage of investment opportunities when they come along without the delay of waiting for your custodian to respond to your investment request. You have complete control over all the investment decisions. But, there are rules to follow. See the IRS rules on Prohibited Transactions.
Employer-Provided 401(k) and other plans
Plans such as 401(k), 403(b)(7), ESOP, or 457 plans in Texas are often beyond the management and control of plan participants. To Cash Out your plan you typically have to pay penalties depending on your age, and taxes depending on where you put the money. In most instances, you cannot make any in-service distributions so you have to quit your job to be able to roll over your retirement funds. But some strategies overcome these limitations and provide a means to “cash out” without penalties and even while maintaining your employment.
Single Member Self-Directed 401(k)
What are the advantages? For a self-employed or sole proprietor, if you qualify you can direct the investment of funds similar to the Self Directed IRA LLC. One big advantage is the contribution limits. As much as $62,000.00 in 2019 of tax-deductible contributions. Ask your tax accountant. You can also rollover IRA and employer-provided 401(k) funds into your single member self-directed 401(k).