What is a Self Directed 401(k)?
A Self Directed 401K, referred to after this as "one.K", is a 401K plan setup for your company. As the Manager of the company, you can act as the Trustee for the Plan's monies. This enables you to self direct investments on behalf of your 401K hence the term self directed 401K. The investments can be in real estate, other companies, or your own C-Corp. The use of this type of structure enables you to have investment and checkbook control over the 401K.
How does the Self Directed 401K (one.KSM) work?
- Create Entity (LLC or C-Corp). NAFEP will create the entity with the appropriate state.
- Create the Plan (Trust with Plan documents). NAFEP will create the Plan and file with the IRS.
- Rollover monies from IRA or 401K to your one.K.
- Setup Checking Accounts for the Company and the Plan.
- Direct Investments by purchasing membership or stock in a company (your C-Corp or another entity).
Strategies for using the Self Directed 401K (one.KSM):
- Purchase real estate
- Loan to yourself or others
- Buying or starting a business
- Use purchase options on real estate
- Flip properties
- License intellectual properties
Please Fill Out The Following Form To Receive A Free Presentation on Self Directed 401(k)'s!
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