Get Started with Your Self-Directed IRA
Before starting your self-directed IRA, you will want to take these initial steps:
1 Review IRA Structure and Plans – Review your plan for starting your self-directed IRA with your tax professional. Good, qualified tax guidance will be in your best interests moving forward for planning, accounting, reporting and overall plan compliance. If you don’t utilize a tax professional you should seriously consider this valuable resource for future plan operations. The importance of working with a qualified tax professional is a strong recommendation
2) Which IRA is Best for You – You may have options. You may wish to establish a Traditional IRA. Then again, you may currently have a Roth IRA. Maybe you want to convert your IRA transfer into a Roth IRA. If self-employed, you may want to look at the SEP IRA. And, if you have a small business (with employees), but don’t want some of the complications of a company-sponsored 401(k) plan for your business, your business could establish a SIMPLE IRA. Which is best for you?
(a helpful hint is that most individuals establish a self-directed Traditional or Roth IRA, but it is always good to know of the other options!)
While most people choose a traditional or Roth IRA for self-direction, it’s always great to check out ALL your options first!
Many will tell you to establish your plan immediately….Fulcrum Self-Directed won’t say that to you. Why?
Why Not Start Your Self-Directed Plan Immediately?
Because you should always do your due diligence and research. This is a two-step process, and not necessarily in particular order. You will want to research self-directed options to determine what type of plan is in your best interests and that you qualify for. Secondly, you will want to research self-directed companies and facilitators to determine which company may be best suited to assist you. For example, does the company have a strong knowledge base on the subject matter, what type of repore do you have with them, do you feel they will be able to assist you in the future…or want to help you! Will they spend the time to educate you on the process? Of course, there are important considerations related to fee arrangements, etc., but probably of more concern is are they “selling” a plan or “selling” a relationship.
Get Started with Your Self-Directed 401(k)
Before starting your self-directed 401(k) plan, you will want to take these initial steps:
1) Review Business Model and 401(k) Plan — Review your proposed or current self-employed business model and plans for your 401(k) with your tax professional. Good, qualified tax guidance will be in your best interests moving forward for planning, accounting, reporting and overall plan compliance.
2) Determine Entity Structuring — Whether you are starting a brand new business or considering modifying your current business structure, you should determine what entity structuring is best for you. For example, should your business structure be a sole proprietorship, LLC, S-Corp, C-Corp, etc.? What is best for overall operation, ease of administration and complying with state or federal filing/maintenance requirements?
3) Ready? — Now that you have laid down the best foundation for your business and how the 401(k) plan will be sponsored, learn the steps for establishing your new 401(k) or call us at (866) 331-6350.