Self-Directed 401k Plans

By Jason Watson, CPA

Posted November 23, 2018

There are 401k plans that allow you to invest into non-traditional investments such as real estate or buying a business. A common phrase you hear in a ROBS 401k which stands for Rollover for Business Start Ups. It is beyond the scope of this chapter, and frankly it can be a very bad idea although it sounds hip at your next cocktail party. Rob is certainly the operative word since we see a lot of these ideas rob people of their retirement money.

A self-directed IRA is easier to setup and maintain, while a self-directed 401k plan is much more challenging. While these two self-directed vehicles, they share similar problems and gotchyas. Here is a recent post on the pitfalls of self-directed IRAs and 401k plans-

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If you want more information, we have worked with Equity Trust and New Direction IRA who can create and help maintain these accounts and plans.

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