I'm considering rolling old 401K funds into one. Have any of you guys done it? What were your experiences? I'm not really interested in knowing if you made or lost money, unless you want to share that. I'm really more interested in hearing about how the process of conducting real estate transactions went. Did the IRA company provide timely service, or was the entire process of buying/selling real estate from within the IRA a pain?
I'm sick of throwing money at the stock market and feel more confident that I can make money in real estate.
Yup, did exactly that a little over a year ago. I have a financial firm that dealt with most of the paperwork, but the only difference was a few forms the IRA Co required to allow release of funds. Also, the real estate was held in the name of the IRA Account Number with me noted as the Owner of the account. Pretty simple as long as you know the requirements up front.
30% ROI last year, not all real estate, but better than the stock market where the 401k had been sitting.
Absolutely..... for several years now
we have self directed 401(k) solo accounts with full checkbook control
cost about $1900 to set up but no annual fees.
(rolled in a number of average performing qualified accounts as well)
We have full check book control, no need for a middleman/custodian etc. Plus our money is in OUR local bank under OUR control, but the bank does charge us an annual account maintenance fee of $100 that the manager reverses on request.
We do not need approvals etc from a third party for deals we decide to do
(survived a recent IRS audit of my 2009, 2010 returns)
just be VERY aware of the full extent of prohibited transactions & arms length dealings.
our returns have been exceptional & it's fulfilling to be in TOTAL control.
I would look at Jeff Nabers site for very detailed but somewhat 'commercial' info on the concept. I believe he currently offers a deal for $2,500 with annual fees.
those you quoted we reviewed but they charge too many fees require full custodial control & are way too restrictive for the types of deals we do.
When I get back to the office I will update this reply with the company we dealt with.
good luck it's an amazing wealth building concept.
EDIT: I just noticed that you're talking about Self Directed 401K Solo Accounts with Checkbook Control. I need to learn more about that account structure..I don't know a thing about them.
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Thanks for the info expat.. I have been sort of afraid of the "checkbook control" IRA accounts. Don't get me wrong, I love the idea and would very much enjoy the freedom that "checkbook control" would give me with my real estate investing business, but I have been warned by some very knowledgeable people about those types of accounts. I have personally talked with H. Quincy Long -President/CEO of Quest IRA Inc. and Ryan Kimura, V.P. of Sales and Marketing of Quest IRA Inc. and they both very smart individuals, have been in the business for quite some time and are very leery of the IRA LLC / checkbook control structure. They claim the IRS hasn't really officially ruled one way or the other about their legality and that the companies that are offering them are doing so based on only looking at part of a legal ruling in the Swanson case.
Here's some articles about the topic. I'm not saying that you do or don't have anything to worry about, I just tend to fall on the side of being conservative because I can't afford to get burned if the IRS decides to make a stupid ruling.
Please send me the info that you have. I would very much enjoy reading and looking further into whatever you can provide. If you have the time to read any of the articles linked above I would also enjoy hearing your thoughts about those. Thanks!
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