Diversify your Retirement Funds
Investors with self-directed IRAs and Solo 401(k)'s have an excellent option to diversify their retirement assets outside of stocks and bonds into real estate investments. Ace Capital Real Estate Fund supports capital from self-directed IRAs and Solo 401(k) accounts. We have provided answers to some frequently asked questions.
What is a Self-Directed IRA?
A self-directed individual retirement account (SDIRA) is a type of individual retirement account (IRA) that can hold alternative investments. While the account is administered by a custodian, the account holder is responsible for managing its assets. Thus the name, "Self-directed". Self-directed IRAs are best suited for more sophisticated investors who want to participate in alternative investments and get the benefits of a tax-advantaged account.
What is a Solo 401(k)?
A Solo 401(k) is a retirement account design for self-employed or businesses with with no full-time employees. The Solo 401(k) plan offers many of the same benefits as a traditional 401(k) plan. It allows the business owner to make contributions as both the employer and the employee, maximizing their contributions.
Contribution limits to a Solo 401(k) plan are higher than traditional plans. The 2020 contribution limit is $57,000. If you are over the age of 50, the limit is increased to $63,000.
Can I invest through a self-directed IRA and Solo 401(k)?
Accredited investors can join an Ace Capital Real Estate Fund using capital from a self-directed IRA through a custodian. Investors can also send money directly from their Solo 401(k) plans.
Which custodians can I open a Self-Directed IRA with?
Avestor has partnered with the following SD-IRA custodians:
- Millenium Trust Company - www.mtrustcompany.com
- Madison Trust - www.madisontrust.com