I’ve been reviewing your website and considering my options with
regard to some of my retirement accounts. Last year I accepted a
payout of my old employer pension plan. I rolled over those funds
into a newly created IRA at Schwab. Currently I am self employed and
have a solo 401k with Schwab that is also managed by an outside
financial advisor. I would like to be able to self direct the new IRA
funds into other alternative investments, private reits, trust
deeds/notes. The new IRA is under $100,000. If I understand it
correctly the self-directed 401k would have less fees, administration
than a self directed IRA and would not require the formation of an
LLC. Is this correct?
Correct. There are other advantages as well – CLICK HERE for more on this.
Would I be able to convert my Schwab solo401k to a self-directed
solo401k – transfer the new IRA funds to the solo401k, which could then be invested in notes and maintain the brokerage account with Schwab (which would continue to be managed by the current broker/advisor). If yes, would it require liquidating all holdings in the current brokerage and then re-buying them? (potentially costly).
(1) Yes (2) Your investments can be transferred in-kind.
Does the 2 year hold period (on SIMPLE IRA?) apply to a rollover IRA that was funded with pension funds? No.
I’m thinking my other alternative would be a checkbook IRA LLC. I see you charge $1100 to set up but i did not see your annual fee. Do you maintain compliance on these accounts similar to the solo401ks? GHB: While we certainly provided ongoing support to our IRA LLC customers, the account of the IRA (which is invested in an LLC) would be at a company called IRA Services Trust company and this company would be your primary contact for ongoing support.Since it is an LLC don’t you need to pay the $800 california llc fee every year? Yes the CA franchise tax fee will apply since you are located in CA.
To learn more about the process of changing solo 401k providers, VISIT HERE.
