401k contributions

Forum|Forum|1 year ago
June 26, 2024
1 reply
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My company uses Voya for managing 401k contributions and investments. I don't like this company because they can't answer any questions regarding investments or even the products you can invest in. I have only been contributing 3% of my wages into the account because I have been getting a better return on my money in stocks through Fidelity. Is there another way I can contribute pre-tax dollars to an account that does not go through VOYA?

Ask the Experts - Retirement II - June 2024

FranklinF

It appears Misspag, that I should be consulting you about investing.
🙂

On a serious note, I congratulate you on your ability to obtain a better return for your investments otherwise. If you truly have the discipline and you are confident in your skills, you may consider establishing a SELF-DIRECTED IRA and rolling over a designated amount of your 401 K plan into it. There are STRICT RULES of owning and operating a SELF-DIRECTED IRA but , as I stated earlier, this arrangement is for taxpayers confident enough to manage their retirement income and get better returns than conventional Financial Institutions.

Self-Directed IRA (SDIRA): Rules, Investments, and FAQs

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MisspagAuthor

Hi Franklin,

Thank you for your reply. How can I find out what the "strict rules" are? Is a self-directed IRA different from the Rollover IRA that I opened when I left my last job?

Thanks,

Suzanne

FranklinF

SELF DIRECTED IRA's are managed and operated by the taxpayer through a custodian (Financial Institution)

Below is a link that introduces you into the concept of SELD-DIRECTED IRA's:
Self-Directed IRA (SDIRA): Rules, Investments, and FAQs

Below is a link about prohibited transactions related to retirement income:
Retirement Topics - Prohibited Transactions

In addition, the custodian Financial Institution may have some restrictions of their own.

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