Cash balance plans and self directed IRAs

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jackal
Posts: 22
Joined: Thu Jan 14, 2010 7:24 am

Cash balance plans and self directed IRAs

Post by jackal » Sat Oct 07, 2017 12:10 am

Any suggestions on how to get the cheapest cash balance plan going for a small business? Based on what I read, looks like an actuary might cost me north of 3-4K but where would the money be held? Is there a fee for holding the money somewhere, like a record keeping fee for a 401k? Any idea who is worth the price?

If I choose to use a bit of my ira as play money, to open a self directed ira, what is the best way to do that and how do I make sure I don’t violate any rules. In case I do, is it just the play money account that becomes taxable or my ira with an existing custodian invested in the market as well?

Any books I could read up to learn more about the two topics?

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David Jay
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Location: Michigan

Re: Cash balance plans and self directed IRAs

Post by David Jay » Sat Oct 07, 2017 12:14 pm

For the second topic, what did you want to do within the self-directed portion? If it is public securities (stocks, bonds, options, etc.) then all you need to do is transfer a portion of your IRA to a new custodian, presumably a low-cost brokerage house like TDAmeritrade, Schwab, etc.

All transactions within your IRA have no tax consequences (the only way to have the transactions affect taxes is if you buy and sell substantially the same instruments inside your IRA and outside your IRA, then you can have a "wash sale" issue outside your IRA).

If you are talking about "funkier" holdings like real estate, physical commodities, etc. then you are asking questions above my pay grade.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

jackal
Posts: 22
Joined: Thu Jan 14, 2010 7:24 am

Re: Cash balance plans and self directed IRAs

Post by jackal » Sat Oct 07, 2017 1:03 pm

Thank you for your response. It is for funkier holdings one may consider buying with their “play money”.
Also can’t really find a lot of info on cash balance plans. I understand I need an actuary but can’t figure out where the funds would be kept.

jackal
Posts: 22
Joined: Thu Jan 14, 2010 7:24 am

Re: Cash balance plans and self directed IRAs

Post by jackal » Thu Oct 12, 2017 7:51 am

Bumping the post to see if anyone knows the answer or at least know where I could find the answer. Thank you!

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