How to Switch to Self-Directed IRA? - Posted by PartickMD

Posted by MilNC on April 20, 2000 at 20:48:10:

Thanks for that info–very interesting! I had not heard of owning a business in an IRA. Tell us more!

But, all IRA’s are not self-directed if they are in an account where the trustee doesn’t allow you to invest
the way you want. So you can direct your funds, if
you move it to another account, then. Like if I move
mine to Mid Ohio or Entrust, that would be the only way I could “direct” my IRA. I have to move it.
Ann

How to Switch to Self-Directed IRA? - Posted by PartickMD

Posted by PartickMD on April 19, 2000 at 10:50:31:

I’m in an employer-contracted IRA now (few investment choices, no cre investment allowed, take it or leave it). I’d like to leave it! I do know, “There may be substantial penalty for early withdrawl.” Anyone know the details of dropping this one and picking up a self-managed IRA? Would I be better off just starting a new self-directed IRA and leaving the old one alone? Thanks for your help.

Here’s a good bad joke that I hope my friends in Wisconsin will forgive me for.(I grew up in Oshkosh. We don’t need much to make us laugh!)

Q. There’s a lisping prodigy architect named Early. What does he call his sketch of Taliesin?

A. An Early With Drawal.
Groan!

All IRA’s are self-directed - Posted by John Behle

Posted by John Behle on April 19, 2000 at 13:13:12:

There really is no difference in IRA’s (except the new ROTH). All are self directed, it’s just a matter of cooperation and willingness of your trustee.

You do not need to do a rollover. All you need is a “trustee to trustee transfer” which you can do an unlimited amount of times with no penalty. This is not the same as a rollover, which I think you can do two times a year (maybe once - not sure).

MidWest has a good reputation as well as many others out there. Start with them, if that doesn’t work, I can direct you to another.

Re: How to Switch to Self-Directed IRA? - Posted by chris

Posted by chris on April 19, 2000 at 11:40:02:

Patrick-

Give a call to Mid-Ohio. They have a banner at the top of the page and should be able to clear this up.

Don’t quote me on this but there should not be any penalty if you do a rollover correctly to an IRA. When I was looking into this for a 401K rollover the one thing that had to be done was the 401K administrator made the funds payable to the IRA account. If they made it out to you personally the IRS penalties had a big chance of being triggered(if not automatically). Anyways this should be a pretty basic thing for the folks at Mid-Ohio to guide you through.

-Good Luck,Chris

Re: All IRA’s are self-directed(?) - Posted by MilNC

Posted by MilNC on April 20, 2000 at 20:06:17:

Mine is with Schwab. I was told by them that it was not
self directed, and that I could not invest with it.
Therefore, I understood that I needed to move it.

Are we talking about the same thing?
Ann

Re: All IRA’s are self-directed - Posted by PatrickMD

Posted by PatrickMD on April 19, 2000 at 22:29:10:

Thanks for your solution, John. I’ll do that. Always excellent articles, too, by the way. I read every one. Pat.

Re: All IRA’s are self-directed - Posted by ChuckP

Posted by ChuckP on April 19, 2000 at 16:13:43:

Suppose you want to go from a rollover to Roth? Right now is perfect considering that tech stocks are depressed. Is there anybody out there you would recommend? I meet with my broker Thursday.

Also, since I quit my job and went full time REI, most companies force you to do a Rollover IRA (and take forever and a day) if you are not moving your money/stock/bonds to another 401K.

Thanks,
Chuck

Re: How to Switch to Self-Directed IRA? - Posted by PatrickMD

Posted by PatrickMD on April 19, 2000 at 22:24:53:

I’ll do that, Chris. Thanks! Pat.

Re: All IRA’s are self-directed - yes - Posted by John Behle

Posted by John Behle on April 20, 2000 at 20:29:16:

All IRA’s are self directed. Yet, many trustees like Schwab will only allow investments in what THEY want you to invest in. They charge lower fees because they have use of your money or make commissions.

The very same IRA and funds can be transferred to another Trustee and you can direct those investments. There are rules to what you can and can’t invest in such as “self dealing”. But it is far more wide open than most people would know. You can invest in notes, real estate, etc. You can even own businesses, like one of the Trustees I deal with. He has a side business he owns in his IRA that is a Pawn Shop.

Re: All IRA’s are self-directed - Posted by John Behle

Posted by John Behle on April 19, 2000 at 18:09:23:

I’d recommend you first check out the companies above. You can click on Entrust’s or Mid West’s banners above or go to the following links.


http://www.midoh.com/privatebank.htm