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Warning: Don't let administrators act as custodian January 7, 2009

Posted by Jeff Nabers in : Self Directed IRA Solo 401k , 4comments

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To have a self-directed IRA, unlike a Solo 401k, you must have a self-directed IRA custodian… and you should stay away from unregulated companies masquerading as a custodian. A self-directed IRA custodian is one that will have less investment restrictions than the more common tradition stocks/bonds/funds brokerage-type custodian, and they usually allow investment into real estate, private companies, and other alternative assets.

An IRA is technically a trust, and a custodian is basically a trustee who performs fewer duties than a trustee usually would. As the name suggests, the sole duty is custody-holding assets and/or property on behalf of the trust.

The Internal Revenue Code says that the IRA custodian role can only be served by:

  1. A bank
  2. A trust company (this is the most common type of company to serve as self directed IRA custodian)
  3. A company specially & specifically approved by the IRS (this is very rare)

So, essentially, in the self directed IRA market, most custodians are chartered as (more…)

Arkansas Couple Realizes the Benefit of Managing their Own Retirement Accounts November 26, 2008

Posted by connieoutreach in : real estate, Self Directed IRA Solo 401k , add a comment

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The stock market implosion of 2008 has millions of Americans feeling financially helpless.  Yet individuals who are investing their 401k & IRA money in ventures outside the stock market are singing a different tune. Janice and Jack Stoddard, real estate professionals in Arkansas, heard about self directed investing from a seminar that taught how to invest IRA money into real estate.

Energized by the idea, the Stoddards established two IRAs, rolling over money from their traditional IRAs to fund them.  They used the IRAs to make small real estate transactions, purchasing and reselling property at a profit with all proceeds staying in the IRA.

In 2006, an opportunity to buy and then immediately re-sell 60 acres of undeveloped land at a profit came up.  Concerns over structuring the deal and keeping everything above board led the Stoddards to consult with us at Nabers Group.

“Jeff helped us establish a Solo 401k that could be used to handle the 60 acre transaction. The Solo 401k was a key component to our funding because we were able to contribute 10 times more to it than we could to an IRA.  Meanwhile, our son, who works in oil and gas, alerted us to keeping our eyes open for property with mineral rights for future transactions,” Janice says.

With the proceeds from the 60 acre sale, the Stoddards began (more…)

Prohibited Transactions Guide Book – 50 Free Copies September 22, 2008

Posted by Jeff Nabers in : Self Directed IRA Solo 401k , add a comment

I’ve written a comprehensive guide book on prohibited transactions. These will be available for sale soon for $39 + $5 shipping. I’m making 50 copies available completely free of charge on a first come first serve basis.

If you’d like one of these 50 free copies, please email your name & shipping address to:

specialoffer3 [at symbol] nabersgroup [dotcom]

This blog has been viewed over 20,000 times since April, so act fast  ;-)

### Update – October 3, 2008

We have (more…)