What is a Self-Directed IRA?
A self-directed individual retirement account (SDIRA) is a type of individual retirement account (IRA) that can hold alternative investments. While the account is administered by a custodian, the account holder is responsible for managing its assets. Thus the name, "Self-directed". Self-directed IRAs are best suited for more sophisticated investors who want to participate in alternative investments and get the benefits of a tax-advantaged account.
What is a Solo 401(k)?
A Solo 401(k) is a retirement account design for self-employed or businesses with with no full-time employees. The Solo 401(k) plan offers many of the same benefits as a traditional 401(k) plan. It allows the business owner to make contributions as both the employer and the employee, maximizing their contributions.
Contribution limits to a Solo 401(k) plan are higher than traditional plans. The 2020 contribution limit is $57,000. If you are over the age of 50, the limit is increased to $63,000.
Can I invest through a self-directed IRA and Solo 401(k)?
Accredited investors can join an Ace Capital Real Estate Fund using capital from a self-directed IRA through a custodian. Investors can also send money directly from their Solo 401(k) plans.
Which custodians can I open a Self-Directed IRA with?
Avestor has partnered with the following SD-IRA custodians:
- Millenium Trust Company - www.mtrustcompany.com
- Madison Trust - www.madisontrust.com