Retirement Plans that offer Self Direction

Self Directed Retirement Plans

Self Directed Retirement Plans are plans generally offered by two types of entities, with several variations.
  • Self Directed Custodians or Third Party Administrators (TPA)
  • Facilitators

Custodians and Third Party Administrators generally do not offer Checkbook Control over Plan assets.
Facilitators assist in the structuring of retirement plans which include Checkbook Control for you.
What is "Self Direction"?
Self Direction means that you make the investment decisions for your own retirement plan assets.  True self direction means that the assets are not limited to stocks or stock options, mutual funds or ETF's. It also means that you are responsible for the results of your investment decisions. Self Direction has been legal since the inception of the IRA in 1976.

You should consider Self Direction if:

  • You have lost, or are losing money in retirement plan investments that you do not control
  • You want the control and the responsibility for your investments
  • You have special expertise in a business and know how to make money in that business
  • You have had better investment results investing on your own than the results obtained in your retirement plan from professionally managed investments
  • You no longer trust the people managing your investments

Self Direction Plans are available for IRA's Roth IRA's SEP's and 401(k) plans, with many variations including the new Individual (k) plans, which were enhanced by the Pension Protection Act PPA in 2006 to include a Roth element similar to the Roth IRA, but with enhanced features available only in a 401(k) plan.
The best candidates for an Individual (k) plan are sole proprietors, small business owners and solo practitioners including Doctors, Dentists, Nurses, Therapists and Accounting and Legal Professionals who practice alone.or who have employees that work less than 1000 hours per year.

 

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