IRA / 401(k)

Rolling Over Your Retirement Savings into an SDIRA: A Quick Guide

You have your retirement savings in a 401(k) or IRA and would like to access those funds for investing in SGLP. Good news! Your can roll over your savings into a Self-Directed IRA, penalty free.

Have SGLP refer you to Self-Directed custodians we work with frequently: Send us a message or call: (480) 602-6737

A Self-Directed IRA (SDIRA) offers investors unparalleled flexibility in managing their retirement assets. One of the key advantages of an SDIRA is its ability to hold a wide range of alternative investments, including real estate, private equity, precious metals and hedge funds such as SGLP. If you're considering an SDIRA, you may be wondering which retirement accounts can be rolled over into this type of account.

Types of Retirement Accounts That Can Be Rolled Over into an SDIRA

Generally, most traditional retirement accounts can be rolled over into an SDIRA. These include:

401(k) Plans: Employer-sponsored retirement plans that allow employees to contribute a portion of their salary to a tax-deferred account.
457(b) Plans: Similar to 401(k) plans, but typically offered to government employees.
Traditional IRAs: Individual Retirement Accounts that allow individuals to save for retirement on a tax-deferred basis.
Roth IRAs: IRAs that allow individuals to contribute after-tax dollars and potentially withdraw earnings tax-free in retirement.
And more

Limitations and Considerations

While many retirement accounts can be rolled over into an SDIRA, it's important to be aware of potential limitations and considerations:

Direct Rollovers: For the most tax-efficient rollover, consider a direct rollover from your old retirement plan to your new SDIRA. This avoids unnecessary taxes and penalties.
Early Withdrawal Penalties: If you withdraw funds from your retirement account before the age of 59½, you may be subject to a 10% penalty. This does not apply to roll overs to a SDIRA.
Custodian Rules: The custodian of your retirement account may have specific rules and procedures for rollovers. It's essential to consult with your custodian to ensure a smooth transition.
Investment Restrictions: Some SDIRA custodians may have restrictions on certain investments, such as hedge funds. It's crucial to check with your custodian to determine if your desired investments are permissible. For investing in SGLP, ask your custodian if they allow investments in Private Funds or Private Placements. Again, we can refer you to institutional custodians that we work with frequently. *Note: We do not get paid for referring clients.

Consulting Your Custodian

Not all SDIRA custodians are created equal; check with your custodian to ensure they allow investments in private funds before opening an account with them. For the most accurate and up-to-date information regarding your specific situation, it's highly recommended to consult with the custodian of your retirement account. They can provide detailed guidance on the rollover process, potential limitations, and any specific requirements that may apply.

By carefully considering your options and consulting with a qualified financial advisor, you can make informed decisions about rolling over your retirement savings into an SDIRA.