I’m not a expert to be clear, but I’ve learned from people in the industry. Most notably Ben Williams (owner of www.iselfdirect.com). They specialize in self directed IRAs and Solo 401ks. Here are the biggest reasons that I know of.
Contribution Limit
IRA - $5500 / year
Solo 401k - +$50,000 / year
This is a no brainer for anyone who wants to invest more than $5500 per year in tax advantaged accounts.
Both offer pre and post tax options.Borrowing period
IRA - 60 days to pay back any loan from account
Solo 401k - 5 years to pay back loans from account
This is a huge benefit if you are a savvy investor who knows how to leverage spread opportunities with loans from you retirement accounts. This, plus the contribution limit make Solo 401ks the absolute best tax advantages account for entrepreneurs and business owners. It can do anything (correct me if I’m wrong) an IRA can do with these 2 huge advantages.Security
IRA - Falls under State Law protection
Solo 401k - Falls under Federal Law protection
There are more advantages than just these, but this list is strong enough to consider Solo 401ks as the way to go for sure!
Once again, I’m not an expert, but if you want to talk to one, feel free to contact www.islefdirect.com. They can answer all your questions and assist in implementation. Hope this helped!
P.S. I’m not affiliated with iSlefDirect. Just giving an honest recommendation based on my experience.
self directed 401k's are usually attached to a corporation. I have a (sole proprietor) 401k with my LLC, and have a traditional, SEP, and Roth IRA personally.