Children of Soldiers Fund

So about the time you have self directed IRAs figured out I throw this self directed 401(k) thing at you.And for good reason I might add.Don’t get me wrong, IRAs are a great tool, so is a putter on the green, but from 200 yards out it doesn’t work as well as a 4 iron. The same goes for certain types of investors and investments.Self directed 401(k)s for individuals are really Solo 401(k)s. These were formed by Congress and came to life in late 2006. Sole proprietors, the self employed, and anyone who has income from a business can have a Solo 401(k).401(k)s have several features that are superior to IRAs.1. Higher contribution limits $51,000 per person vs. $6,000 for an IRA. 2. Roth contributions up to $20,000 with no income limits, unlike Roth IRAs. 3. Much less onerous prohibited transaction penalties than IRAs. 4. Loan provisions are possible. 5. No UDIF tax.That last one is for real estate. If you purchase a property with an IRA and finance part of it you will still owe taxes on the capital gains of the percentage of the property that was financed. For

Considerable attention has been paid to the window opening for Roth IRA conversions in 2010. Scheduled in a tax law enacted in May 2006, the rules on conversions will be opening up next month. Popular inquiry on the topic has increased. This article will address many of the opportunities and problems raised by expanded Roth IRA conversion options. First let’s define the mechanics of a Roth IRA conversion. An investor may convert some or all of his traditional IRA accounts, SEP-IRAs, 401ks, or 403b balances to a Roth IRA. These source accounts are tax-deferred. Ordinary income tax must be paid on any pre tax assets that are transferred. Once transferred, however, the gains on investments in the target Roth IRA account are free of tax. Someone undertaking a Roth IRA conversion is thus electing to pay taxes now in exchange for a tax holiday in the future.Key Parts to the New LawThere are two key elements to changes in the law regarding Roth IRAs in 2010. The first is that eligibility to do a Roth IRA conversion will no longer be means tested. Income limits on conversion are permanently repealed. Since