Switch Jobs? Here’s What to Do with Your 401(k)

Jobs come and go. And many of those jobs arrive with 401(k) plans—most with employer-matching contributions.?

But what happens to that 401(k) when you move on and leave that employer?

If you’re scratching your head, pondering its fate, you're not alone.?

While many options exist, one path increasingly stands out: rolling it over into a Self-Directed IRA (Individual Retirement Account), also known as an SDIRA.

Following is your guide to understanding the whys and how' of using a Self-Diected IRA and? how to navigate your financial future with confidence, no matter where your career takes you.

First, What Exactly Is a Self-Directed IRA?

A self-directed IRA (Individual Retirement Account) is a unique type of retirement account that allows you to invest in a wider range of assets than a traditional IRA.?

While traditional IRAs are typically limited to stocks, bonds, and mutual funds, a self-directed IRA gives the investor the flexibility to include alternative investments like real estate, private companies, and precious metals, to name a few.

The main appeal of a self-directed IRA is the greater control and diversification it offers the investor. A self-directed IRA (SDIRA) offers serious tax advantages, also, which is a huge appeal to any investor.?

Think of it as the ultimate tool in your financial toolkit, where you're not just playing by the rules, but setting the game.

The obvious advantage of an SDIRA over any other type of account is the flexibility to invest in a variety of things, including:

• Bitcoin
• Gold
• Promissory Notes
• Tax Liens
• Intellectual Property
• Gas and Oil Leases
• Commodities
• Private Equity
• Startups
• Tax Liens and Deeds

But that’s not all.?

Thanks to the tax benefits of the Roth-IRA structure, you won’t pay a penny on any dollars you earn in that account.?

Let’s say you invest $10,000 in a social media startup through private equity and make ten million dollars. You won’t pay a cent in taxes.?

It’s how people like Peter Thiel have billions in IRAs and will never pay a dime in taxes on any of those investments.?

How to Rollover a 401(k) to a Self-Directed IRA

So what if you only have a 401(k)? And just how easy is it to roll over a 401(k) to a self-directed IRA?

It’s incredibly easy, and you don’t have to pay taxes on any money you roll over.?

Have $100,000 in a 401(k)? Roll it over and put that money instantly to work without paying a dime in taxes.

The process is super easy:

1. Find a custodian
2. Let them complete a direct rollover
3. Fund your account?
4. Start investing

Direct rollovers are the easiest and safest way to move your funds to a self-directed IRA. This trustee-to-trustee transfer is non-taxable, and allows for a quick transfer.

If you prefer a more hands-on approach, you may want to consider an indirect rollover. But this comes with many stipulations, and I don’t recommend going this route.?

Most custodians charge a fee for this; however, my company Horizon Trust, does not charge anything for rollovers.?

Turn Your 401(k) Into Millions

Every loss presents a new opportunity for growth.

If you’ve lost or left your job, there are still ways to save for retirement.?

When you roll over a 401(k) into a self-directed IRA, you will be given the financial freedom to invest how you want to reach your retirement goals.?

But if you’re not sure you are cut out to start investing with an SDIRA, don’t worry.?

I am offering all my followers a free seminar on how to use your self-directed IRA and make millions using the strategies and mindset I put forward.?

The lessons in this seminar will help you avoid unnecessary taxes, adopt a wealthy mindset, and learn how to invest in assets like real estate.?

Sign Up for the Free Seminar Here

For those looking to learn more about self-directed IRAs, check out the blog on my new website or Horizon Trust. If you want to open a new self-directed IRA, schedule a call with any of the reps at Horizon Trust.?

Thanks for reading!

Greg Herlean