American IRA Explains Estate Planning with Self-Directed Solo 401(K)s

American IRA Explains Estate Planning with Self-Directed Solo 401(K)s



Retirement-protected accounts like Self-Directed Solo 401(K)s are powerful tools for contributing high maximums toward retirement and ensuring that the principle remains protected throughout a lifetime of investing. But according to a recent post at American IRA, there is more that investors can do with an account like a Self-Directed IRA or a Self-Directed Solo 401(K)—including the ability to handle some estate planning with these accounts.

According to the post, distributions from retirement accounts are required upon the investor’s death. This transfers the assets from the accounts to any heirs—which can be a problem for those who have not designated their beneficiaries in the way they see fit.

“A lot of people think that retirement accounts are solely for retirement,” said Jim Hitt, CEO of American IRA. “And that is logical. But retirement accounts are also more flexible than that. They can be a part of estate planning. An investor who really wants to cover all their bases should make sure that they designate the proper beneficiary of their account. That way, they will be far more likely to leave money behind to the people who should get it.”

The post notes that frequent beneficiaries on accounts like Self-Directed Solo 401(K)s include spouses, children, grandchildren, trusts, and even charities. Investors can even name combinations of these beneficiaries as they see fit, giving them more freedom to handle their estate planning in the way they see fit.

The post points out that some common mistakes with Self-Directed Solo 401(K)s and other similar accounts include not naming a beneficiary or not including contingent beneficiaries. Retirement investors who do not have their beneficiaries up to date may leave behind a substantial retirement account that is not designated to go to the person they wanted all along.

“If you want to make sure that you have everything taken care of, take care when it comes to naming a beneficiary,” said Jim Hitt. “The goal with this post at American IRA was to point out that estate planning is not only about drafting a will. It is also about having a plan in place.”

For more information on Self-Directed Solo 401(K)s and Self-Directed IRAs, visit American IRA at or call 866-7500-IRA.

American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC.”