Checkbook 401k plans, Checkbook IRAs, Checkbook QRPs and other self-directed retirement accounts that allow real estate investing
with tax advantaged funds should be part of every real estate agent’s financial plan. This article will introduce the fundamentals of such accounts and the opportunities they present for those that have an insider’s view of the real estate market.
What Are Self-Directed Retirement Accounts?
Self-directed retirement accounts, which can be in the form of IRAs or Qualified Plans
, allow you to use retirement money for non-traditional investments
and retain all the tax benefits of those vehicles. Real estate investing
is by far the most popular investment for such accounts, with other common assets being real estate secured private loans
, private loans, hard money loans, mortgage notes, and tax liens
– all of which are forms of income generation from real property. Continue reading “Self-Directed Real Estate Retirement Accounts For Real Estate Agents”
Checkbook Control QRPs, 401(k) plans, and SDIRAs are powerful vehicles for investing in alternative assets classes, including: real estate, raw land, private loans, hard money loans, private businesses, tax certificates, cryptocurrency, crowdfunded investments, foreign & overseas assets, and so much more.
Getting access to and rolling over funds from your employer-sponsored 401k
to a Checkbook QRP, Solo 401k
or Checkbook IRA
is doable in many instances, but you’ll have to overcome some obstacles to do so. With the knowledge provided in this post, you’ll be prepared to get the results you want.
Checkbook QRP, self-directed Solo 401k
and checkbook-control IRA
investors are aware (I hope that’s true) of the Prohibited Transaction Rules and Disqualified Persons
discussed in IRC 4975
. So, if you’re familiar with IRC 4975 are you covered? Or, do you need to know more than that to stay in compliance and protect your assets?
The Plan Asset Rule
There’s a lesser known extension of IRC 4975
in the Code of Federal Regulations that discusses something known as the Plan Asset Rule
. In a nutshell, the Plan Asset Rule says that when retirement plans own a “significant” share of an entity, all of that entity’s assets are treated as assets of the retirement plans for purposes of the prohibited transaction rules. The implications of this can be staggering; if retirement plans collectively own a significant portion of an entity, all the disqualified persons of all the retirement plan investors are disqualified persons to that entity. Continue reading “Beyond Prohibited Transactions: The Plan Asset Rule”