Self-Directed IRA and 401K

Accounts - Arrangements


A Self-Directed IRA or 401K Arrangement or Account allows the account holder to have complete control over investment decisions and investments subject to certain IRS requirements. It allows the investor to invest in any of the following investments:

Unsecured Promissory Notes to corporations, law firms, and other business enterprises;
Notes secured by Deeds of Trust;
Loans to Homeowner Associations, including Fractional Interests or Participations;
Private Placements;
Equipment Leases;
Fractional Interests or Participations;
Rental Homes; or
Certain Coins

IRS regulations require that either a qualified custodian or trustee hold the assets on behalf of the IRA owner. This requirement exists for all self-directed and non-self-directed retirement plans.

Certain types of investments are prohibited as IRA and 401K investments. These prohibited investments include:

Life Insurance,
Stamps, and
Certain Coins

With the great tax advantages provided by IRAs and 401Ks, and the wide range of possible investments, it is possible to build wealth and secure your future faster than through other methods of investing. Most importantly, Self-Directed IRA and 401K Accounts are protected from creditors even in bankruptcy.

There are many large, qualified custodians and trustees available to assist investors in rolling over existing IRA and 401K Accounts into Self-Directed Accounts.

Investors should be aware that custodians and trustees of self-directed IRA and 401k accounts generally do not have a duty to evaluate the quality or legitimacy of an investment that is being offered. In fact, self-directed custodians and the trustees nearly always state in their agreements that they have no responsibility for the performance or any investment. Therefore, as with all investments, investors should conduct their own evaluations of the merits of investments being offered before investing.


Self-Directed IRAs

Frequently Asked Questions

Q. Who holds the money or other assets of a Self - Directed IRA account?
A. Cash, the title to real estate, and all other assets of the IRA account are held by a trustee or custodian. Trustees and custodians must be a bank, federally insured credit union, savings and loan association, or entity approved by the Internal Revenue Service to act as a trustee or custodian.
Q. Is it possible to have more than one IRA account?
A. Yes.
Q. How does a Self- Directed IRA account with an independent administrator differ from the traditional IRA account I have with my bank?
A. Banks usually direct your IRA funds into CDs or other accounts that pay a minimum return. While this benefits the bank, it provides a return that is often less than the rate of real inflation. IRAs administered by stock brokerage firms are generally directed into stocks, bonds, and/or mutual funds that are sold by the brokerage firm.
Q. What is the Retirement Industry Trust Association (RITA)?
A. The Retirement Industry Trust Association (RITA) is a professional trade association committed to the growth and expansion of self- directed retirement plan administration. Their goal is to help Americans reach their retirement goals.
Q. Can I purchase a retirement home through a Self- Directed IRA?
A. Yes, but you will be required to rent in out to a third party until you retire, move into the property, and take the required distribution. Many homes in the Coachella Valley and Big Bear Lake area are purchased with Self- Directed IRA funds and then leased.
Q. Can I use my Self- Directed IRA to purchase corporate notes and bonds?
A. Absolutely. High quality corporate notes that earn 8% to 10% per annum, tax deferred, can provide a fast and safe means to a comfortable early retirement.
Q. Can I purchase a house through my IRA account?
A. Only if it is a rental property. You may not use an IRA to acquire a personal residence.
Q. Is it permissible to use IRA funds to purchase a limited partnership interest in a mortgage pool or other private investment fund?
A. Yes.




Installment Sales

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Ventura County:

Camarillo, Channel Islands, Faria Beach, Fillmore, Moorpark, Newbury Park, Oak Park, Oak View, Ojai, Oxnard, Port Hueneme, Santa Paula, Saticoy, Somis, Simi Valley, Thousand Oaks, Ventura (San Buenaventura), Westlake Village.

Orange County:

Aliso Viejo, Anaheim, Balboa Island, Brea, Buena Park, Corona Island, Costa Mesa, Cypress, Dana Point, Foothill Ranch, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forrest, Los Alamitos, Mission Viejo, Newport Beach, Newport Coast, Orange, Placentia, Rossmoor, San Clemente, San Juan Capistrano, Santa Ana, Santa Ana Heights, Seal Beach, Stanton, Tustin, Tustin Foothills, Villa Park, Westminster, Yorba Linda.

Santa Barbara County:

Ballard, Buellton, Carpinteria, Gaviota, Goleta, Guadalupe, Hollister Ranch, Hope Ranch, Isla Vista, Lompoc, Los Alamos, Los Olivos, Mission Canyon, Mission Hills, Montecito, Orcutt, Santa Barbara, Santa Maria, Santa Ynez, Solvang, Summerland, Toro Canyon

Riverside County:

Anza, Banning, Beaumont, Bermuda Dunes, Blythe, Cabazon, Calimesa, Canyon Lake, Cathedral City, Cherry Valley, Coachella, Corona, Desert Hot Springs, East Blythe, East Hemet, El Cerrito, Glen Avon, Hemet, Highgrove, Home Gardens, Homeland, Idyllwild-Pine Cove, Indian Wells, Indio, La Quinta, Lake Elsinore, Lakeland Village, Lakeview, Mecca, Mira Loma, Moreno Valley, Murrieta, Murrieta Hot Springs, Norco, Nuevo, Palm Desert, Palm Springs, Pedley, Perris, Quail Valley, Rancho Mirage, Riverside, Rubidoux, San Jacinto, Sun City, Sunnyslope, Temecula, Thousand Palms, Valle Vista, Wildomar, Winchester, Woodcrest.

San Diego County:

Carlsbad, Chula Vista, Coronado, Del Mar, El Cajon, Encinitas, (Cardiff-by-Sea, Leucadia, Olivenhain), Escondido, Fairbanks, Ranch, Fallbrook, Imperial Beach, Julian, La Mesa, Lake San, lakeside, Lemon Grove, National City, Oceanside (San Luis Rey), Poway, Romona, Rancho San Diego, Rancho Santa Fe, San Diego, San Marcos, Santee, Solana Beach, Hidden Meadows, San Diego County Estates, Spring Valley, Vista.

San Bernardino County:

Adelanto, Apple Valley, Barstow, Big Bear, Big Bear City, Chino, Chino Hills, Colton, Crestline, Fontana, Grand Terrace, Hesperia, Highland, Joshua Tree, Lake Arrowhead, Landers, Loma Linda, Montclair, Morongo Valley, Needles, Ontario, Rancho Cucamonga, Redlands, Rialto, Running Springs, San Bernardino, Twentynine Palms, Upland, Victorville, Yucaipa, Yucca Valley.

San Luis Obispo County:

Arroyo Grande, Atascadero, Avila Beach, Baywood-Los Osos, Cambria, Cayucos, Grover Beach, Lake Nacimiento, Los Osos, Morro Bay, Nipomo, Oceano, Paso Robles, Pismo Beach, San Luis Obispo, San Miguel, San Simeon, Santa Margarita, Templeton.



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