There are many choices for self directed retirement plans for your IRA, ROTH IRA, SepIRA, and other QRP accounts. If you have IRA accounts you will need to choose an administrator for your account. They will be the ones holding your money and other assets for the benefit of you the beneficiary. Entrust is one of them but not the only one.  Depending on what you are going to be investing in will deterring the best IRA Administrator. Some of them are good at Note investments while others will be good if you want to purchase real estate assets.

Some are more expensive then others and some will be better if you plan on starting an LLC to make your investments in. On the other hand if you have a QRP plan which could be a combination of a 401k and profit sharing plan for a self employed person or small business, you can be the trustee for the plan and have full control over the cash and other assets. There are many benefits to a QRP plan over an IRA which we will detail further on this site.

Here are some of the benefits using a QRP plan:

 

1. You get to manage the accounts directly with out traditional brokers, trust companies or other middle men. You become the trustee and the administrator for the plan.

2. You can legally avoid UDFI taxes which would apply to certain self directed IRA transactions that uses debt to leverage the return.

3. You are not stuck with stocks and bond. You can direct your investments in alternative assets like real estate, precious metals, tax liens, private companies, foreign assets, etc.

4. You can transfer existing assets and funds from other plans into your QRP plan.

5. Contribute up to $51,000 a year into your QRP plan

 

There are many companies that set up QRP plans however if you call a traditional retirement company or brokerage most will not know about these plans or tell you that they don’t exist. Since they are in the business of selling the products they have, there is no benefit for them to set up a plan that you will not use to purchase their products.  We will share with you a list of companies that you can contact to learn more and get a quote to set up a plan. You can also contact an ERISA attorney or law firm to set up a plan.

If you plan of buying, selling and renting real estate, then the best way may be for you to start an llc and your QRP plan would be the owner of the LLC. You could be the manager of the llc with out any compensation. It is very important to contact an ERISA law firm to set these up for you and advise you on what you can and can not do.

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