In 2017, the Self-Directed IRA Contribution Limits To Remain the Same as 2016
The 2017 Self-Directed IRA maximum contribution limits will remain the same as 2016. For individuals under the age of 50, the maximum Self-Directed IRA contribution for 2017 will be $5,500, the same of 2016. For individuals over the age of 50, the maximum Self-Directed IRA contribution for 2017 will be $6,500, the same of 2016.
The Self-Directed IRA LLC Solution
A Self-Directed IRA LLC will offer you the ability to make traditional (stocks, mutual funds) as well as non-traditional investments (real estate, precious metals, etc.). All of this is tax-free and without custodian consent. With IRA Financial Group’s Self-Directed IRA LLC, a special purpose limited liability company (“LLC”) is created and the IRA owns it completely. However, you o a third party manages the LLC.
The advantage of using an LLC to make the investment is that you can treat the LLC as a passthrough entity for tax purposes. This means the owner of the LLC will be subject to the tax, not the LLC itself. However, as per Internal Revenue Code Section 408, IRAs are exempt from tax. As a result, in most cases, all income and gains the IRA LLC generates will flow back to the IRA tax-free.
In addition, the LLC investment vehicle allows the IRA owner to take more control of his or her retirement funds. The IRA owners can keep the IRA funds at a LLC bank account and not with a far away custodian. This offers “checkbook control” and greater flexibility to make investments quickly and without delay.
A World of Investment Opportunity
With a Self-Directed IRA LLC, you can invest in almost any type of investment opportunity that you discover. This includes:
- Domestic or foreign real estate (rentals, foreclosures, raw land, tax liens etc.)
- Private businesses
- Precious metals (i.e. gold or silver)
- Hard money
- Peer to peer lending,
- Stock and mutual funds
All of the income and gains from these investments will flow back into your IRA tax-free.
No Transaction Fees – Hassle Free IRA Investing
With a Self-Directed IRA structure, you will have the power to act quickly on a potential investment opportunity. Just write a check for the investment, or wire the funds straight from your Self-Directed IRA LLC bank account.
A Self-Directed IRA LLC structure will help you save a significant amount of money on custodian fees. With a Self-Directed IRA LLC, you no longer pay excessive custodian fees based on account value and transaction fees. Instead, your IRA funds will transfer tax-free via a passive custodian. This goes to a new LLC bank account where you, as manager of the LLC, can make investments, tax-free and without custodian consent.
Did you know?
To take a distribution from a Self-Directed IRA LLC, funds need to be sent to the IRA custodian and cannot be taken from the LLC.