Real estate is once again the most popular investment for IRA Financial Group clients in 2013
IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC solutions, announces the findings of its client survey regarding the subject of self-directed IRA investments for the 2013 taxable year. The results of the survey showed that real estate was the most popular investment for 2013. Over 74% of the clients surveyed responded that they engaged in sort of real estate investments with their self-directed IRA funds in 2013. According to the survey, hard money lending, private business investments, precious metals/coins, and stocks were the next four most popular self-directed IRA investments for 2013. “Not surprisingly, real estate was the most popular self-directed IRA investment for IRA Financial Group clients in 2013,“ stated Adam Bergman, a tax partner with the IRA Financial Group. “What was surprising was the raw land purchases were just as popular as flipping transactions in 2013, “ stated Mr. Bergman.
A Self-Directed IRA, also called a self-directed IRA LLC with checkbook control, is an IRS approved structure that allows one to use their retirement funds to make real estate and other investments tax-free and without custodian consent. The self-directed IRA involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the IRA custodian) and managed by the IRA holder or any third-party. As manager of the IRA LLC, the IRA holder will have control over the IRA assets to make the investments he or she wants and understands.
The Internal Revenue Code does not describe what a self-directed IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits Disqualified Persons from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of retirement savings and to prohibit those in control of IRAs from taking advantage of the tax benefits for their personal account.
The foundation of the prohibited transaction rules are based on the premise that investments involving IRA and related parties are handled in a way that benefits the retirement account and not the IRA owner. The rules prohibit transactions between the IRA and certain individuals known as “disqualified persons”. The outline for these rules can be found in Internal Revenue Code Section 4975.
According to Mr. Bergman, in 2013, real estate continued to be the investment of choice for IRA Financial group clients, however, due to the difficult lending environment, hard money lending became a very popular investment for IRA investors.
IRA Financial Group’s self-directed IRA real estate solution is a perfect vehicle for investors looking to better diversify their retirement portfolios, as well as gain the ability to make a wide array of investments, including real estate, precious metals, private equity, hedge funds, and much more in a tax-deferred account. “However, the robust real estate market in 2013 contributed to strong demand for real estate investments from our self-directed IRA clients, “ stated Mr. Bergman.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading “checkbook control” Self Directed IRA provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.