Self-Directed 401k Plans

Jason Watson, CPA

1 year ago

By Jason Watson, CPA
Posted Saturday, November 5, 2023

There are 401k plans that allow you to invest in 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 set up and maintain, while a self-directed 401k plan is much more challenging. While these two self-directed vehicles share similar problems and gotchas. Here is a recent post on the pitfalls of self-directed IRAs and 401k plans-

wcginc.com/6133

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.

Jason Watson, CPA, is a Senior Partner of WCG CPAs & Advisors, a boutique yet progressive tax, accounting
and business consultation firm located in Colorado serving small business owners and taxpayers worldwide.

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