Setting Up a Self‑Directed IRA or Solo 401(k) with Rocket Dollar: What Investors Should Know

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For investors wanting more control over their retirement savings, a Solo 401(k) or Self-Directed IRA (SDIRA) can unlock doors to investments beyond conventional bonds and stocks. These accounts let you diversify your portfolio with tax benefits from real estate cryptocurrency. This year, Rocket Dollar has become one of the top platforms for setting up and managing self-directed retirement accounts. 

In this guide, we’ll walk you through what a Solo 401(k) and Self-Directed IRA are, how Rocket Dollar works, and what to know before opening an account. 

Key Takeaways:

1. Account Options: Investors can select between a Self-Directed IRA (SDIRA) for greater asset flexibility or a Solo 401(k) for higher contribution limits and added advantages like Roth options and loans.

2. Rocket Dollar’s Advantage: Rocket Dollar simplifies account setup and compliance, offering a flat-fee model, streamlined trust or LLC creation, and support for investing in alternative assets like real estate, startups, and crypto.

3. Risks and Responsibilities: Account holders—not Rocket Dollar—are responsible for making investment decisions and ensuring IRS compliance. Alternative assets often carry liquidity and risk considerations that require thorough research.

4. Best Fit Depends on Goals: A Solo 401(k) works best for self-employed individuals seeking higher contributions, while an SDIRA is more suited for those focused on diversification. Choosing the right account depends on business structure, income, and retirement strategy. 

What is a Solo 401(k)?

A Solo 401(k) is designed for self-employed business owners or individuals with no employees (other than a spouse). It’s an attractive option because of higher contribution limits and loan features.

Highlights:

1. 2025 contribution limits are up to $69,000 (with catch-up contributions for those 50+).

2. Allows for employee and employer contributions.

3. Offers Roth and traditional options.

4. More setup and paperwork than an SDIRA, but better for high earners.

What Is a Self-Directed IRA?

A Self-Directed IRA, or SDIRA,  is a retirement account that offers more flexibility than a traditional IRA. Instead of being limited to ETFs or mutual funds, investors can direct their savings into a wider range of assets.

Eligible investments include:

• Real estate (commercial, residential, land)

• Startups and private companies 

• Digital assets and cryptocurrency 

• Precious metals

• Private lending and notes

Top considerations:

• The account holder—not the custodian—makes investment decisions.

• IRS rules still apply, including restrictions on “prohibited transactions.”

• Research beforehand is vital since these assets often carry a higher risk.

Rocket Dollar: Why Choose It for Alternative Investments in Your IRA?

Rocket Dollar is designed to help simplify the process of setting up Solo 401(k)s and Self-Directed IRAs. It does so by handling compliance, account creation, and funding logistics. 

Notable benefits of Choosing Rocket Dollar include: 

Flat-Fee Model

Instead of charging based on assets, Rocket Dollar uses a monthly fee (Gold or Silver plans), making it more budget-friendly for large portfolios.

Access to Alternative Assets

Users can invest in startups, crypto, real estate, and more. 

Streamlined Setup

Rocket Dollar creates a trust or LLC to hold investments, reducing red tape. 

Investor Control

You decide where funds are allocated while Rocket Dollar provides compliance support. 

Setting Up a Rocket Dollar Account: A Quick Step-by-Step

Setting up an account with Rocket Dollar is a clear and easy process that helps investors move from application to investment smoothly. Each stage is straightforward but requires attention to detail to make sure the account is set up correctly.

1. Choose your account type: Decide between a Self-Directed IRA or Solo 401(k) based on your business structure, income, and goals.

2. Apply through Rocket Dollar: Fill out the online application and choose your plan (Gold or Silver).

3. Fund your account: Transfer funds from an existing retirement account or make contributions.

4. Select investments: Direct your money into crypto, real estate, private equity, or other IRS-approved options.

5. Maintain compliance: Follow IRS rules on prohibited transactions to keep your account in good standing.

Fees and Cost Structure

Rocket Dollar’s flat-fee pricing is one of its primary selling points. Compared to custodians who charge based on assets under management, this flat-fee pricing model is even more beneficial for investors with large portfolios.

• Core Plan (Self-Directed IRA): $360 one-time setup + $30 per month

• Gold Plan Checkbook IRA and Solo 401(k) plans: $40 per month (includes priority support, debit card, and tax assistance)

Top Considerations Before You Start

Before opening a self-directed account with Rocket Dollar, it’s essential to understand the responsibilities that come with it. Knowing the influential factors in advance can help you decide if this type of account fits your retirement strategy.

1. Custodian vs Investor: You—not Rocket Dollar—are responsible for investment decisions.

2. IRS Compliance: Certain transactions (like purchasing a property for personal use) are prohibited.

3. Liquidity Risks: Alternative assets like startups or real estate may be harder to liquidate.

Solo 401(k) or Self-Directed IRA: Which is Best for You?

Choosing between a Solo 401(k) and a Self-Directed IRA depends on your business situation, income, and savings goals. Both accounts allow alternative investments, but they differ in contribution limits and flexibility. Understanding these differences helps investors choose the account that best matches their needs.

Self-Directed IRA

Self-Directed IRs are best for individuals looking to diversify retirement savings with alternative assets and who don’t have significant self-employment revenue.

Solo 401(k)

Solo 401(k)s are ideal for self-employed business owners wanting higher contribution limits and the ability to make employee and employer contributions.

Conclusion 

Rocket Dollar continues to be a top choice this year for investors who want control over their retirement accounts. Whether you’re interested in private companies, crypto, or real estate, a Self-Directed IRA or Solo 401(k) can help you diversify and grow your savings. However, these accounts require careful compliance and strong investment discipline.

If you’re looking to expand beyond conventional retirement investing, Rocket Dollar may be the platform for you!