Complete the form below for assistance
Partition your 401(k) retirement account.
Your circumstances may allow you to utilize a QDRO to enable your family to control investment of funds in your 401(k) by rolling over the funds to a self-directed IRA or a self-directed 401(k) without penalties, without terminating your employment and without incurring tax liability at the time of rolling over the 401(k) account. This strategy is not always available and is very specific to your circumstances. Contact us to review your circumstances.
Employer-Provided 401(k) and other plans
Plans such as 401(k), 403(b)(7), ESOP, or 457 plans in Texas are often beyond the management and control of plan participants. To Cash Out your plan you typically have to pay penalties depending on your age, and taxes depending on where you put the money. In most instances, you cannot make any in-service distributions so you have to quit your job to be able to roll over your retirement funds. But some strategies overcome these limitations and provide a means to “cash out” without penalties and even while maintaining your employment.
Single Member Self-Directed 401(k)
What are the advantages? For a self-employed or sole proprietor, if you qualify you can direct the investment of funds similar to the Self Directed IRA LLC. One big advantage; the contribution limits. Elective deferrals for employees of $20,500 in 2022 ($19,500 in 2020 and 2021), or $27,000 in 2022 ($26,000 in 2020 and 2021) if age 50 or over. Ask your tax accountant. You can also rollover IRA and employer-provided 401(k) funds into your single member self-directed 401(k).
Special Rules apply to contribution limits available to self-employed individuals.