Diversify your retirement funds outside of traditional mutual funds and ETFs.

A self-directed IRA (SDIRA) is a type of individual retirement account that can hold alternative assets such as real estate, commodities, crypto, tax liens, private equity placements, and limited partnerships. While the account is administered by a custodian, the account holder is responsible for managing its assets. Thus the name, "self-directed". Available as either a Traditional IRA (to which you make pre-tax contributions) or a Roth IRA (to which you make post-tax contributions), self-directed IRAs are best suited for knowledgeable investors who understand the benefits and risks of private alternative investments and who want to diversify their tax-advantaged account.

In a standard self-directed IRA, your custodian disburses funds at your request. Some custodians can take a month or more to send the funds, and many charge a fee for this service.

You can bypass that lengthy process with what's called a checkbook IRA. The checkbook IRA is actually a limited liability company (LLC) checking account that's funded by your self-directed IRA. An LLC is specifically established for that purpose, with you as its manager. You can then open a checking account using the LLC's name and tax ID. Your self-directed IRA would fund the checking account. Some custodians will set this up for you.

At that point, you, as LLC manager, can then write checks or wire funds to purchase investments in the LLC's name. Any income and expenses associated with those investments would pass through the LLC to your SDIRA.

A Solo 401k plan is a Retirement Plan designed for small business owners who traditionally do not have the benefits of an employer-sponsored 401k. Business structures include a sole proprietorship, LLC, C-Corps, and S-Corp. Self-employed individuals are eligible, including those with a side income in addition to their W-2 job. In addition, their spouse (if in the business) and/or their business partners. There cannot be any full-time W-2 employees.

Other benefits include much higher yearly contribution limits and the ability to borrow from the account without penalty.

See more details in our article, The Solo 401k Plan – The Power to Invest in Commercial Real Estate Equity and Debt.

Since real estate (and most other private alternative investments) and retirement accounts both have longer investment time horizons, retirement accounts are well matched as a source of capital for investing in alternative investments like private credit. Investing from your retirement account can reduce your tax impact for some private alternative investments that are not tax advantaged, such as a fixed income private credit fund. As always, ask your tax professional or CPA on advice for your specific situation.

Some employer 401(k) programs do allow for self-directed investments or have a trigger to allow funds to be rolled to a SDIRA or Solo 401(k). Check with the 401(k) plan administrator.

Investors can join a Kirkland Capital Group managed fund using capital from a self-directed IRA through a custodian. Investors can also send money directly from their Solo 401(k) plans.

Many investors have rolled their previous employer sponsored 401(k) to a Fidelity or Vanguard Rollover IRA. While they will try to convince you to keep money with them, you have the full right to move those funds to a Self-Directed IRA or even a Solo 401(k). There should be no negative tax impact unless you move from a Traditional plan to a ROTH plan; talk to your tax professional or CPA on your specific situation.

We are already available on many custodial platforms, see the Investment Partners & Platforms for an up-to-date list. If you don’t see your preferred custodian, reach out to us so we can help you onboard.

For SDIRAs, each custodian has a different process to fund an investment. We recommend you research the custodians to determine which one best suits your needs. Different custodians require different information on your investment so please make sure to understand their requirements prior to setting up an account with them.

For Solo 401(k)s, once you complete the normal subscription document you can send money directly to the fund.

Once you are ready to invest, book a time with us so we can help you have a smooth process.

Kirkland Capital Group does not charge any fees for accepting self-directed IRA or Solo 401(k) funds.

Each self-directed IRA custodian and Solo 401(k) plan service has their own fee structure. On our Investment Partners & Platforms page there are some discount codes and links available.