Roll it over!Found an interesting “How To” on setting up a self directed account. When your account is all set up at one of the custodians, let us know and we will  help you learn more about commercial real estate investing.
By Mark Kennan – eHow Contributing Writer
Many employers set up 401(k) plans to help their employees save money for retirement. Some employers even match all or part of their employees’ contributions. However, you can only invest the money in a 401(k) plan in investments offered by your company. For people who want more control over their retirement savings, transferring money from the 401(k) plan into a self-directed IRA, or individual retirement account, may make sense because the only forbidden investments in an IRA are collectibles like antiques or gems.

Instructions

Step 1
Find your self-directed IRA account information or contact your financial institution to find out the information if you do not have it written down.
Step 2
Select a direct rollover for the simplest transfer of funds from your 401(k) to your self-directed IRA. You will not have to touch the money with a direct rollover. If you want to use the money for up to 60 days, choose to have the money paid to you to redeposit in your self-directed IRA. However, 20 percent of the money will be withheld and the IRS has stiff penalties for missing the 60-day deadline.
Step 3
Inform the 401(k) administrator of your intention to roll the money into your new account. If you are performing a direct transfer, the money will be transferred automatically without you having to worry about tax withholding or missing deadlines to redeposit the money. That’s all it takes to complete a direct transfer. If you are having the money paid to you first, you will receive a check for the amount of the distribution minus 20 percent, which will be withheld to pay for taxes in case you do not rollover the money within 60 days.
Step 4
Redeposit the money from your rollover payment within 60 calendar days of requesting the payment. You must redeposit the amount you withdrew, not the amount you received, to avoid penalties. For example, if you withdrew $5,000 to rollover, $1,000 would be withheld so the check you receive would only be for $4,000. However, you are still responsible for depositing $5,000 in the self-directed IRA.
Step 5
Report the amount of your rollover on your taxes as a non-taxable distribution on line 16a but not as a taxable distribution on line 16b on your form 1040. Write “rollover” next to line 16b.