Contribution limits for self-directed IRAs largely remain the same for 2021 as they were for 2020. As of 2020 and now through 2020, annual contribution limits are at $6,000 for savers under 50, and an annual contribution of $7,000 for those 50 or over. It’s important to note that these limits apply across all IRA […]
Category: Self-Directed 401K
How to Navigate your First 401(k)/Retirement Plan
Whether you’ve just started your first corporate gig, or if you’ve just been thinking about securing your future, you’ve probably heard the term “401(k)” thrown around a lot, and how you should open one that’s being offered through your workplace. So what is a 401(k) exactly? 401(k) in a Nutshell Having the (k) in its […]
Know Your Retirement Accounts: Simple IRA, SEP and Solo 401K (Updated for 2021)
Being aware of the different types of self-employed retirement accounts that are available to you is important to get the most out of your retirement and retirement planning. The accounts that are available to most employees are your typical IRA and 401K with Roth and Traditional kickers. However, your account options are much more plentiful […]
Owning and Operating a Self-Directed 401K 101
Ever heard of a self-directed 401K? It might be what you need. It’s not very common for employers to offer a self-directed 401K, more than likely you’ve been contributing to an employer-sponsored 401K. While there are similarities, they’re both retirement savings vehicles, and they follow the same rules, but the fundamental difference is that there’s […]
Start Rolling Over Your 401K to an IRA
When it comes to a 401K, you can take it with you from job to job, and in fact, you should, and it should be in the form of a 401K rollover. But making the most of the money you’ve built up means performing the rollover correctly. Here’s the four-step process for how to rollover […]
Self-Directed 401K Plans Broken Down and Explained
A self-directed 401K lets you invest as you see fit. You can choose your own mutual funds, stocks and bonds rather than sticking to the pre-made funds typically associated with a retirement savings account. You can even invest in more unconventional assets like real estate and commodities if your employer allows it. The types of […]
Self-Directed IRA Rollover Terminology Broken Down
Rollovers are the most common way to transfer funds within retirement accounts. Transfers and rollovers are transactions that allows for the movement of assets between IRAs and 401K plans. Let’s go over the basic terminology. Direct Rollover A Direct Rollover is generally used when moving funds from an employer plan (like a former employer 401K) […]
How Everyone Can Save for Retirement When a 401K isn’t Offered at Work
Are you one of the millions of workers without a retirement plan at work? Or perhaps you’re self-employed and don’t have an employer at all? In either case, it’s imperative that you take your retirement savings and investments into your own hands. Employer retirement accounts are great, but many businesses don’t take on the added […]
The CARES Act Allows Savers to Cash Out Their 401K, But Should They?
Typically, the penalty for withdrawing from a 401K before the age of 59½ is 10% of the distribution, plus an automatic withholding of at least 20% for taxes. But with the passage of the CARES Act, that all changes for 2020. The $300 billion earmarked for direct payments is getting considerable attention, but the CARES […]
Qualified for Both? SEP IRA vs Solo 401K
Both the SEP IRA and the Solo 401K are self-employed retirement plans. They can be established by legal entities (in this context, often S corporations) or they can be established by individuals that have self-employed income. That self-employment income generally must come through a sole proprietorship or through a limited liability company (LLC) that is […]