Missouri

Now more than ever many people with 401(k) accounts are considering what to do. While 401(k)'s have some advantages, they are quite disadvantaged compared to select types of IRA accounts. It is suggested that a person who wants to rollover a 401(k) plan to an IRA choose a self-directed IRA account. There are many positive advantages to this choice, and this I'll explain why it is better.

An aspect of this worth talking about here is the ability to have a self-directed 401(k). Though this sounds similar to a self-directed IRA, it is quite different. For one,, although investment options are more varied with a self-directed 401(k), there are still many limits to what can be done. Some employer plans impose limits on the portion of the account that can go into the self-directed part of the plan.

For example, an employer might only allow 1/4 of an account to go into the self-directed plan while the remainder stays in the standard 401(k). This limits your control over your own money and makes it more complicated. Also, 401(k) plans, regardless of type, are tied to your employer's corporation. An employer might choose to switch to a new plan, or a new company, or make other changes unfavorable to employees holding 401(k) plans. Converting to an IRA is advantageous because all the money goes into the new plan, and you have the flexibility of choosing the account counselor in order to suit your individual needs.

One of the most compelling reasons to convert the 401(k) plan to an IRA is to allow for greater diversity in investment choices. If converting to a traditional IRA, a big part of this benefit is lost, as traditional IRA types also have considerable limitations on what assets can and cannot be invested into it. It would be in your best interests to go all the way and choose a plan that allows for the widest selection of choices.

Self-directed IRA's are also better because they allow full control of the money by you, the account holder. Any IRA is better than a 401(k) plan in this regard to some degree, as 401(k) plans are fundamentally limited by their structure of being linked with a certain employer and company. This means the company sets things up in order to achieve the highest benefits possible for itself, and your best interests, unfortunately, are not always kept at the top of the priority list. However, a self-directed IRA is also the best way to go.

This form of IRA has the account managed by a custodian who helps out with everything; however, does not control what happens in the account. When you aren't limited by any third party, highest-performing investments can be chosen for the benefit of whoever has all the money in the account. Equity Trust Company is one example of a self-directed IRA custodian. A self-directed IRA is simply the best choice for rolling over a 401(k).

For more information about investing with a self-directed IRA, call Paul Surles at 913-266-5847, e-mail at Paul@MetroREOSales.com, or visit www.MetroREOSales.com. There are many options to invest in Kansas City real estate and other areas throughout the country.

I cannot believe how many emails I have already received telling me to get on the ball and find out what fun Halloween-y (is that a word) activities are coming up in St. Louis right now. Ok here is what I have found so far. Please send me an email if I have missed anything and I will blog about activities as I hear about them.