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RE: 100 STEEM Bounty : Looking for an IRA that can potentially do crypto

in #ira7 years ago

Are you sure you want an IRA? If you have a choice, which it appears you do, a Solo 401k might be worth checking out. They are different from your employer provided 401k plans. Solo 401k plans are for business owners. Even small or new businesses qualify, but you must have proof of business ownership (LLC does the trick). The perks of Solo 401k are substantially better than IRA (roth or traditional). Solo 401k plans are self-directed. I'm semi confident there is a custodian on the market that covers crypto investments. If this sounds new to you, please compare IRA vs Solo 401k before going further down the IRA path.

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Can you explain why?

I’m not a expert to be clear, but I’ve learned from people in the industry. Most notably Ben Williams (owner of www.iselfdirect.com). They specialize in self directed IRAs and Solo 401ks. Here are the biggest reasons that I know of.

  1. Contribution Limit
    IRA - $5500 / year
    Solo 401k - +$50,000 / year
    This is a no brainer for anyone who wants to invest more than $5500 per year in tax advantaged accounts.
    Both offer pre and post tax options.

  2. Borrowing period
    IRA - 60 days to pay back any loan from account
    Solo 401k - 5 years to pay back loans from account
    This is a huge benefit if you are a savvy investor who knows how to leverage spread opportunities with loans from you retirement accounts. This, plus the contribution limit make Solo 401ks the absolute best tax advantages account for entrepreneurs and business owners. It can do anything (correct me if I’m wrong) an IRA can do with these 2 huge advantages.

  3. Security
    IRA - Falls under State Law protection
    Solo 401k - Falls under Federal Law protection

There are more advantages than just these, but this list is strong enough to consider Solo 401ks as the way to go for sure!

Once again, I’m not an expert, but if you want to talk to one, feel free to contact www.islefdirect.com. They can answer all your questions and assist in implementation. Hope this helped!

P.S. I’m not affiliated with iSlefDirect. Just giving an honest recommendation based on my experience.

self directed 401k's are usually attached to a corporation. I have a (sole proprietor) 401k with my LLC, and have a traditional, SEP, and Roth IRA personally.

Awesome post. Make sure to put it in a top level comment, otherwise I cannot get u a piece of the bounty.

Ill just upvote your other comment

Heh you beat me to it