If you’ve checked out the benefits of truly self-directed retirement investing and are self-employed, there is an even better solution than a self-directed IRA: the self-directed 401(k). [If you’re not self-employed, don’t worry, as our self-directed IRA solutions are still a great choice!]
A self-directed 401(k) offers all the benefits of the self-directed IRA (including checkbook control and the ability to invest in Bitcoin while holding your own keys, as well as other alternative assets), but allows larger annual contributions (up to $57,000 per participant annually, depending on your self-employment income). There is no limit at all on the amount of tax-free rollovers into a self-directed 401(k) from existing IRAs or 401(k)s.
A self-directed 401(k) can also have both Traditional and Roth subaccounts.
To be eligible for a self-directed 401(k), you must own a business and have no employees other than owners and their spouses. Non-owner employees working less than 500 hours per year do not count.
If you are eligible, there is a one-time plan setup fee of $1995. The annual fee is a super low $50 per year, starting in Year 2. Unlike most marketing companies offering self-directed 401(k)s, we guide you though the whole process, including providing an EIN for the plan and assistance with getting a checking account, brokerage account, and Bitcoin exchange account (if you want one). Because I am a tax attorney, I can also provide tax advice throughout the process.
If you’re not eligible, don’t fret! You can still do a self-directed IRA.