While there are significant benefits associated with your self-administered 401(k), there are various IRS and DOL rules and regulations that must be strictly adhered to. While investing in assets that you wish to invest into, there is increased liability you face related to very strict IRS and DOL rules governing 401(k) plans.
Should these rules discourage you from self-administering your 401(k) plan….no. However, as the 401(k) Trustee, you must assume the responsibility of operating your plan in full compliance with all IRS and DOL regulations. Not only must you assume due diligence in reviewing investment options for the benefit of your 401(k), you must also ensure that the investment complies with these important IRS and DOL regulations.
Fulcrum Self Directed believes that all 401(k) Trustees must review all transactions and record-keeping responsibilities of the 401(k) with a professional tax or legal professional. While Fulcrum Self-Directed believes that a client should consult with their local professional, Fulcrum Self-Directed is able to refer clients to such professionals as requested, and needed. We strive to educate our clients on the rules governing these accounts and how it may impact their investment strategies. It is of vital importance that the 401(k) Trustee take this responsibility seriously when establishing their self-administered 401(k).
While not intended to replace your tax or legal professional, one may learn more about the rules governing your self-directed 401(k) in IRS/DOL Regulations.