What is a Self Directed 401k -one.K^SM?

A Self Directed 401K, referred to after this as "one.K", is a 401K plan setup for your company. As the Manager of the company, you can act as the Trustee for the Plan's monies. This enables you to self direct investments on behalf of your 401K.

Click here for the Self Directed 401(k) - (one.K^SM) Brochure
Self Directed 401K Presentation

or, to download the presentation for later viewing, or showing a client.
Self Directed 401K (one.K^SM) Standalone Player

Self Directed 401k Benefits to your client:

1. 401K Plans do not permit direct ownership of real estate or other non-traditional investments in an 401K, so indirect investment via the self directed 401K (one.K^SM) is the only choice.
2. When a (one.K^SM) (Self Directed 401K) sells real estate or other investments, the capital gains are deferred through the 401K, like any other 401K investment. The headaches of 1031 exchanges are never necessary.
3. Ownership of the property in a one.K allows you, as manager, to have direct, hands-on control of and investment decisions over one.K assets, including control of the checkbook. Custodian involvement and hassles are eliminated, regardless of whether the investments are in securities, real estate or other assets.
4. A one.K can use its 401K funding as a down payment for a real estate purchase, with the one.K financing or borrowing the balance. The use of debt financing for real estate is not subject to UBIT tax.
5. Since you control and handle all one.K transactions, and act as the "custodian", then there are no expensive annual fees.
6. Litigation threats which accompany investments such as real estate are substantially reduced. This is done by isolating the investment inside a title holding company or Trust holding company, and away from the rest of your 401K funds and estate.
7. Continues to provide deferral of income and gains inside the 401K.
8. If the company sponsoring the plan generates income, then you can make contributions of up to $44,000 annually to the 401K plan ($15K for employee and $29K for employer for the year 2006)

How will the Self Directed 401k help your practice?

1. You will be able to engage clients which you couldn't before, becuase you can offer them a superior way to manage and invest 401K funds.
2. You will be able to invest some of those 401K funds in traditional investments, and gain access to the client's non-IRA or 401K funds and other estate planning needs.
3. You potentially get two clients from each one.K^SM If the clients use their one.K^SM money to purchase real estate, there must be a real estate seller. The real estate seller is an excellent prospective client for a private annuity, which in turn requires investment management./li>
4. Real estate agents will find the clients, sell the one.K^SM and bring the client to you. The agent has two potential sales from each one.K^SM.
5. Put on "tax advantaged real estate investing" seminars. Discuss the one.K^SM or ICO^SM for buyers. Get real estate agents to deliver the audience, they win either way.

Broker-Dealer Compliance Notice:
If you have received approval from you B-D to engage in NAFEP business, you should provide your B-D with information relating to the one.K^SM product prior to engaging clients and get approval for this product. Your B-D may need to review this product for compliance prior to engaging in any business for the one.K^SM.

For more information on the Premier VII one.k^SM (401k) or mySOP^SM (ESOP) products Click Here.
or call
Brian Tillotson our ERISA retirement plans attorney, at (801)266-9900 X -118.
You can also e-mail Brian at btillotson@nafep.com

Augment this product with an iPROP^SM Intellectual Property Retirement Ownership Plan. Click Here to learn more.

For more information on the Premier VII one.k^SM product click here, or call Ben Barker (801)266-9900 X -113

PREVIOUS