Take Your 401k Up A Notch With A Self-Directed 401k

Self-Directed 401k

Those of you reading this article know what a self-directed IRA is but we are not going to be talking about that today. I want to talk about one of the less known self-directed accounts, the self-directed 401k.

A self-directed 401k is practically the same thing as a 401k but the main difference is that you are able to invest in non-traditional investments. At Accuplan we often refer to a self-directed 401k as a one.k. There are some great benefits to a self-directed 401k, so let’s talk about some of them.

Regular 401k plans don’t allow for non-traditional investments. If you want to diversify your 401k portfolio and invest in something other than stocks and bonds than a self-directed 401k is for you.

Because a one.k is a 401k plan setup for your company it allows you to go beyond the regular 401k capabilities. As the manager of the company you will have direct, hands-on control of and investment decisions over one.k assets. This includes control of the checkbook. Custodian involvement and hassles are eliminated, regardless of whether the investments are in securities, real estate, or other assets.

Annual fees are eliminated because you control and handle all one.k transactions and act as the custodian.

A 401k offers a great deal of deferral of income and gains. As long as the company sponsoring the plan generates income, then you can make contributions of up to $53,000 annually to the 401k plan (18,000 for employee and $35,000 for the employer for the year 2015).

These are just a few reasons that make a self-directed 401k a great option. If you are looking for less fees, more control and more investment options then a self-directed 401k is for you. We can help you set up your self-directed 401k plan.

Contact us today for help and information regarding self-directed 401k plans.


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