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Self-Direct Your HSA, Coverdell, or 403b

Not only can you self-direct an IRA or 401k, you can also self-direct your Health Savings Plan (HSA), Coverdell Education Plan, and 403b.  This will allow you to use your own expertise to quickly grow your yields in these lesser known, but very powerful accounts.

Self-Direct Your Health Savings Account:

There are many advantages to a Self-Directed HSA.  It is tax deductible up front, and distributions are tax-free when used for medical expenses.  Later, once you reach retirement age, if you decide to use your HSA for things other than medical expenses, the fees are still rather low.  This makes the HSA a great retirement tool!

Health Savings Accounts offer several advantages.
            *Contributions are tax-deductible (some restrictions apply)
            *Your earnings are tax-deferred and do not add to your contribution limits.
            *You have the power to invest your contributions your way!
            *If you use your HSA for medical expenses they are never taxed.
            *Premium costs for eligible health plans are lower than other health plans
            *Your HSA assets are portable
            *Contributions can be carried over from one tax year to the next
            *You determine how much to contribute each year
            *You have the choice to pay your medical expenses from your HSA or save it for later
           
Self Direct Your Coverdell Education Account:
A self-directed Education Savings Account (ESA) will allow you the ability to invest in your child's education tax-free.  In addition, you will have the freedom to invest your education funds your way, including non-traditional creative investing. 
Benefits
The benefits of the Coverdell ESA can be compared to the benefits of the Roth IRA.
            *Contributions are made with after-tax dollars.  They are not tax deductible.
            *Withdrawals are tax-free if they are used to cover qualified educational expenses.
            *You can use the money for a wide-variety of educational expenses
            *You can even pay for your child's K-12 private school with pre-tax money!
Limitations
            The funds from the ESA must be taken out on or before the beneficiary's 30th birthday.             You can avoid taxes and penalties by rolling over the account into another Coverdell             account for another family member's (under age 30) education.
            Contribution limits- $2,000 per year, per child.

Self-Direct Your 403b:
A 403b is a retirement savings plan designed for ministry and other non-profit organizations. The tax advantages of a 403b are comparable to those of a 401k.  Contributions are tax-deductible and all earnings (dividends, interest, gains) on you contributions grow tax deferred.
If you are a licensed minister, your money can also come out tax-free for housing related expenses.
And the contribution limits in some cases can be quite high.  You will want to get professional advice on your precise situation, but know that for those who qualify, a self-directed 403b can be an extremely powerful retirement planning tool.

My Way 401K- more freedom, more choices