Menu Close

Self Directed IRAs and Roth IRAs

A self directed IRA (Individual Retirement Account) allows the account owner to make all investment decisions based on his retirement plan. Some investment options that are allowed by the IRS are stocks, real estate, mortgages and tax liens. The assets of a self directed IRA are maintained by a trustee or custodian who will file IRS reports and help clients understand their investment options. The only investments that the IRS prohibits are investments in life insurance, artwork, rugs, antiques, stamps and alcoholic beverages. Investors who use a self directed IRA LLC can learn how to invest their retirement funds tax free.

A Roth IRA is a retirement plan that is not taxed by the IRS as long as specific requirements are met by the account owner. Individuals aged 49 or younger who make at least $10,000 a year can contribute a maximum of $5,000 into their Roth IRA each year. There are many advantages to a Roth IRA: funds can be withdrawn tax free anytime, assets can be passed on to heirs and this type of IRA can lead to a reduction in state taxes if the owner’s estate is large enough to be subject to them.

Purchasing real estate with an IRA is incredibly simple. Investing in distressed properties early in life and growing the investment over time can prove to be a very lucrative measure. Rental property is another real estate venture which will gain rental income over time that can later be withdrawn tax free. Account owners should also consider investing in retirement property.

Used in conjunction, a self directed Roth IRA and a self directed IRA LLC can help you make investments that will grow tax free in your retirement fund. These assets can be used to plan for your family’s future in uncertain economic times. With a self directed IRA LLC on your side, you can take advantage of free tax consultations, make sure your IRA is IRS compliant and coordinate setup with a custodian of your choice.

A traditional IRA seems like a myopic decision after considering the benefits of both the Roth and Self Directed IRAs. If you are concerned with your financial future, you must take consider these courses of action when ascertaining where to invest your hard-earned dollars. A trusted IRA LLC can help you capitalize on these grand opportunities.

Share the knowledge
Posted in Solo 401(k)

Leave a Reply