FinancialSuccessInstitute.org Begins New Study of 401K and Self Directed IRA Rules for Profit Generating Deals
FinancialSuccessInstitute.org Begins New Study of 401K and Self Directed IRA Rules for Profit Generating Deals
Fairfax, VA (PRWEB) December 30, 2011
Richard Geller, CEO and managing director of FinancialSuccessInstitute.org, announced today, “The institute is undertaking a new study of the types of deals that the 401K and self directed IRA rules allow the plans to engage in. Many investors are learning the 401K and self directed IRA rules as an alternative to losing more money investing on Wall Street. A good way to think about deals the 401K and self directed IRA rules allow is by thinking about what a corporation is allowed to do for profits. Essentially, the 401K and self directed IRA rules allow the same thing with the restriction of no deals with related parties.”
The Financial Success Institute is offering this new service as an enhancement to current information that compares and contrasts the 401K and self directed IRA rules. Both retirement accounts allow investors to earn tax free profits by investing in almost anything the account owners believe is right for their circumstances. While the Institute offers valuable information about both, the self directed 401K is highly preferred over the self directed IRA because the self directed IRA rules are extremely limiting while the 401K offers many advantages the self directed IRA rules restrict. Readers wanting information about this subject will find it at FinancialSuccessInstitute.org.
Tim Berry, attorney and expert advisory panelist to FinancialSuccessInstitute.org, describes a highly profitable deal the 401K and self directed IRA rules permit: “Assignment of Real Estate Contracts can be more profitable, less work, and ties up less money than buying real estate to hold long term. The way this works is the 401K and self directed IRA rules allow the retirement plan to put down earnest money to obtain control of the property. Next, the self directed IRA rules allow it to market the property to a third party without taking possession. Finally, the self directed IRA rules allow the assignment of the contract to a 3rd party so that he or she can close within the purchase agreement window.”
Geller provides an assignment of contract example permitted under the 401K and self directed IRA rules: “Under the self directed IRA rules, the account ties up a $ 720,000 property with a $ 10,000 earnest money payment. This advantage, in the self directed IRA rules, let’s plan owners with smaller account balances in on bigger deals. This is easy because the self directed IRA rules give owners’ checkbook control of the account. Under the self directed IRA rules, the plan assigns the contract to a third party for $ 40,000. Generating a $ 30,000 profit in 60 days or less. That’s a 300% tax free profit going into the account and fully permitted under the 401K and self directed IRA rules.”
Geller continues, “Another allowable deal included in the 401K and self directed IRA rules is the Seller Carry Back. In this deal, the self directed IRA rules permit the plan to buy a home at a discount for all cash. Under the self directed IRA rules, it then sells the home to good people that are unable to obtain a bank loan under today’s ultra tight lending standards. Following the self directed IRA rules, the plan can collect 7% interest only payments from the buyer for 10 years or until they obtain a conventional loan paying off the retirement plan. All of this is permissible under self directed IRA rules.”
As the institute completes the study of the types of deals legal under the 401K and self directed IRA rules, interested readers will find details at FinancialSuccessInstitute.org. Retirement account owners need to follow the 401K and self directed IRA rules and need details like how to be sure the original purchase offer can be assigned to a third party and other clauses to be included in the contract.
Disclaimer: Information here and at FinancialSuccessInstitute.org is not legal or professional advice about adhering to the self directed IRA rules or for any other retirement accounts. It’s intended only as general information sharing. Seek professional assistance regarding your specific circumstances and applicable laws to assure you follow all of the 401K and self directed IRA rules or before taking any other retirement account action.
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