Self-Directed Retirement Accounts Self-Directed Retirement Accounts Estate Planning Schools of
What are Prohibited Transactions?
What is a Self-
Directed IRA? IRS publication 590, IRC 4975 is the section that
outlines “prohibited transactions” inside an IRA.
A self-directed IRA This generally involves one of the following: Self-Directed
simply means you are
… Doing business with a disqualified person or
allowed to direct the
investments of the IRA. self-dealing. IRA & 401 k
Essentially, the IRA … Benefiting someone other than the IRA
establishes and owns an
LLC. The IRA-LLC can then make any investment
… Investing in prohibited investments
a regular LLC can except for life insurance and col-
lectables. Also, no “self-dealing” is allowed. A disqualified person is the IRA owner, spouse, chil-
dren and parents. And any transactions between the
A truly self-directed IRA is one where the IRA IRA-LLC and a disqualified person is considered self-
dealing or prohibited.
owner does not have to filter every decision
through an IRA custodian. The owner has check-
book control over the IRA funds as manager of the What are Solo 401 ks?
LLC. Typical investments include:
• Check book control of your IRA ac-
… Real Estate ventures Self employed or owner-only businesses ( can have count with an IRA-LLC
… Business ventures
part-time employees) can utilize a self-directed 401
… Mortgages and promissory notes • More investment opportunities
k account and put as much as $45,000 ($50,000 if
… Stocks, Bonds, and Mutual Funds
older than age 50) in it for 2007.
… Options and joint ventures • Asset Protection and Probate
Compared to IRA limits of $4,000 ($5,000 if age Avoidance
50), the 401 k can be a better place to build wealth.
About Transfers and Roll-overs Another advantage for a 401 k is the ability to bor- • Roth IRA’s and Roth 401 K’s
row 50% or $50,000 of the account.
• Combine multiple accounts via
All of these funds can be transferred or rolled over transfers and rollovers
to a Self-Directed account:
… 401 (k) NOTICE: The Estate Planning Schools of America ________________________________
… Regular IRAs (EPSA) does not provide individual tax or legal advice.
Everyone should consult their own legal, tax and finan- 1135 Terminal Way, Suite 209
… Sep IRA cial professional for personal application of any con-
… 403 (b) Reno, Nevada 89502
cepts or strategies taught.
800-968-3373 ~ Fax 800-459-4122
RESOURCES: The Estate Planning Schools of THE VALUE OF FAMILY SERLF-DIRECTED IRA:
America (EPSA) is a for profit company commit-
ted to providing quality education, tools, articles
and research that will make understanding Finan- • To be able to invest jointly with others using retirement dollars ...
cial & Estate Planning concepts strategies easier • To be able to invest in real estate and business ventures ...
for the financial, real estate, tax and legal profes-
• To be able to Protect assets with LLC and IRA laws ...
• To be able to Avoid Probate and transfer assets efficiently and simply to your
EDUCATION: Our courses are intended to heirs…
train professionals in Estate Management, Estate • To be able to control your IRA assets with a check book …
Preservation, and Wealth Transfer. They are de-
• Easy administration and reporting ...
signed to further educate on how to transfer what
you have, to whom you want, how you want, and
when you want. Additionally, our goal is for the
professional to gain a working knowledge and
then develop and work with a team of other pro-
fessionals that provide specific expertise in
wealth and estate planning.
Our cornerstone CAP (Certified Asset Planner)
curriculum is made up of 6 courses:
1. Estate Planning Basics
2. Insurance Basics
3. Private Annuities & Other Exit Strategies
4. Asset Planning & Charitable Planning
5. Asset Protection & Entity Structuring
6. Retirement and Senior Planning
W e do offer a separate course on Self-Directed
IRA’s and the Solo 401 k including the Roth ver-
sions. This course can be downloaded by itself at
our website for $75.
EPSA can also setup a Self-Directed account in co-
operation with The Tax Academy and Sun West
bank. Contact us for details.