This type of investment with a retirement account can be tricky when it comes to regulations and rules—not to mention basic procedures.
Charlotte, NC (PRWEB)
August 30, 2017
The Self Directed 401(k) can seem like a complicated investing vehicle to some, which is why CEO of American IRA Jim Hitt recently published a new explanation on Self Directed 401(k)s and how they could be used for loans as investments.
This type of investment with a retirement account can be tricky when it comes to regulations and rules—not to mention basic procedures. American IRA is a Self-Directed IRA administrator that can help investors handle it, while the investors make the investment decisions themselves. Jim Hitt says that education retirement investors on the type of options available to them is one of the primary reasons behind the American IRA blog.
In the post, Jim Hitt calls the ability to allow loans against the 401(k) balance as one of the most powerful features of a Self Directed Solo 401(k) plan. However, Jim Hitt is quick to point out the various IRS rules and regulations overseeing these kinds of transactions, noting, for example: “You can borrow money against your 401(k) for any purpose, but you cannot then pour those proceeds back into a 401(k) investment if you are personally guaranteeing the debt.”
“This is the type of information people need before they make major decisions with their Self Directed 401(k),” said Jim Hitt regarding the article. “These are not the decisions you should be making without adequately consulting a professional and doing your own research. However, used correctly, these types of accounts can be a tremendous vehicle through which people grow their retirement assets.”