IRA is a distinct type of retirement account that is not taxed under the US law as long as certain conditions are met. In the United States, the tax law allows a tax discount on a partial amount of savings for retirement. The Roth IRA’s basic difference from other tax advantaged retirement plans is that instead of granting a tax break for money placed into the plan the tax break is granted on the money that is withdrawn from the plan during retirement.
In 2011, if you are under age 50, the maximum contribution to be made to the IRA is the smaller of $5,000 or the total amount of your taxable compensation for 2011. If you are 50 or older before the end of 2011, the maximum contribution to be made to the IRA is the smaller of $6,000 or the total amount of your taxable compensation for 2011.
A self-directed IRA is an account that requires the owner to make investments decisions, including investments on behalf of the individual retirement plan. The IRS regulations allow either a qualified trustee or a custodian to hold the IRA assets on behalf of the account owner. There are limitations on the types of assets that can be invested in as well as the types of transactions to be carried out.
The self directed IRA LLC allows you to purchase traditional and nontraditional investments such as mortgage notes, real estate, foreign properties, etc. You can purchase foreclosed properties and tax liens on the spot and you can make personal purchases by writing a check. You can also buy and sell domestic, commercial, residential, foreign and rental properties.
With a self directed IRA you can buy income properties or use your IRA to purchase income properties for profit. With a well-structured IRA you can acquire property with pre-tax dollars, while holding the title to that property outside your Roth IRA, in your name as you please. If you have enough assets in your Roth IRA account, you can hold the title to the property with a self directed Roth IRA. A Self directed Roth IRA has been around for a long time.