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-
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 clients worldwide.
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Taxpayer's Comprehensive Guide to LLCs and S Corps 2023-2024 Edition