IRAs are the oldest type of retirement plans. They allow you to save for your future and are usually overseen by an account manager heavily invested in promoting a limited range of products. A self directed Traditional IRA goes beyond common Wall Street offerings, while still relaying all of the benefits of a Traditional IRA.

Get Tax-Deferred Earnings with a Traditional IRA

The easiest way to fund an IRA is to make an annual IRA contribution. However, with a self directed IRA, it is more common to rollover from a 401(k) plan or other employer-sponsored retirement plan.  You can also do a direct transfer from an existing IRA account.  Either way, once your IRA is open, you can make tax-deferred annual IRA contributions to it until you reach age 70½.

More Reasons to Open a Traditional IRA

• Broaden Investment Choices.  As discussed here, many IRAs offer limited choices when it comes to investing. And, many don’t allow you to take advantage of investment opportunities in the number one industry to wealth in this country – real estate.
• Self Directed Traditional IRAs do.  As an investment professional will tell you, a diversified portfolio is not only the smart way to invest, it’s the more financially sound way to invest as well.
• Quickly Fund Investments Deals.  Not only does a self directed IRA allow you to make your own investment choices, you can immediately fund them as well (subject to statutory right of rescission).
• Invest in Real Estate. You can invest in real estate, which is the number one way to build wealth in this country. The door is open to all forms of real estate and real-estate related items – from mortgages to tax liens. Beyond being able to control investment choices overall, this is one of the most popular reasons workers opt for self directed Traditional IRAs.

Any individual under 70½ years of age with earned income is eligible to contribute to a Traditional IRA. 

Have a question about a Traditional IRA? Contact us to get the information you need. 

Ready to open a self directed Traditional IRA? It can be done in 3 easy steps! 

What is a Roth IRA?

A Roth IRA is a retirement account in which after-tax income is set aside each year. Limits are specified as to how much. Earnings on Roth IRAs grow tax free, and can be withdrawn tax free if the account owner is 59½ and the account has been open for at least five years.

A self directed Roth IRA simply means that the account holder decides how to invest the funds.

Benefits of a Roth IRA

Following are some of the benefits offered by a self directed Roth IRA.

• You Control the Account. As with all self directed IRAs, you control how, when and what you want to invest in. You can take advantage of an endless array of investment opportunities. Among them, real estate, notes, tax liens, mortgages, stocks, bonds, mutual funds, etc.
• No Limit on Profits. There is no ceiling on the amount of profits a Roth IRA can earn. Imagine the benefit of this for your retirement portfolio.
• Tax-Free Investments. The profits from a self directed Roth IRA are tax free upon withdrawal. When you consider the vast profits an account like this can amass, this is a critical benefit.
• Withdraw Without Penalty. Contributions made to a self directed Roth IRA can be withdrawn at any time without being taxed or penalized. This includes profits as well, as long as the account has been established for at least 5 years, and the account holder is at least 59½ years old.
• Protected Investment. Because it is a retirement asset, a self directed Roth IRA is a protected asset in most states.
• Wealth Transfer. A Roth IRA is an excellent way to transfer wealth to survivors upon your death. Your beneficiaries can be anyone you choose - a spouse, dependents or an estate. The beneficiary is then allowed to treat the account as if it were their own IRA, leaving it to their survivors.

Contribution Guidelines of a Self Directed Roth IRA

Before making contributions to a Roth IRA, be sure to know the contribution rules and limits that apply. See the contribution chart for the current contribution limits and guidelines.

For married persons filing jointly, the following contribution guidelines apply for 2009; if you adjusted gross income or AGI is less than $169,000, then you can make a contribution to a Roth. The AGI limit for this year is $116,000 in for single and/or head of household filers.

Phase-out limits starting at around $10,000 lower than the limits listed here do apply.

Ready to open a self directed Roth IRA?  It can be done in 3 easy steps!

What is a SEP?

Known as a SEP or SEP IRA, a Simplified Employee Plan is a retirement plan established by an employer. A SEP permits employers to make deductible contributions for participating employees. These contributions are made to a Traditional IRA. Employers choose how much they want to contribute to a SEP in any given year, up to 25% of earned income (with certain dollar limits). The percentage must be the same for each employee every year.

Self Directed Simplified Employee Plan Defined

If your current plan doesn’t allow you to choose how to invest, you can transfer all or part of your account to a self directed SEP. This is the beauty of a self directed retirement account – you decide how to invest. After all, who knows your retirement objectives better than you?

Who Can Establish a SEP?

SEPs can be opened by any type of business entity, including a sole proprietorship, a corporation or a partnership. In the case of sole proprietorships, the business owner is considered the employee for plan purposes.

Consider a Self Directed SEP IRA if…

• You Are Self Employed as an independent contractor or sole proprietor, or are part of a partnership, C-corp, or S-corp.
• You Want Greater Investment Choices and you are unsatisfied with the returns offered by your current retirement account. With a self directed SEP IRA, you won’t be restricted to mainstream investments like mutual funds, stocks and bonds. You can have a wider choice of investment options including, real estate, mortgages, tax liens, notes, precious metals and more.
• Your Business Income Fluctuates and you don’t want to be locked into a making contributions annually to an employer sponsored plan. Low administrative costs and easy set-up are two major advantages of an SEP over other qualified plans.
• You Want To Reduce The Tax Withheld From Your Paycheck since contributions to your SEP account are not subject to FICA or other tax withholdings (does not apply to self employed individuals).
• You Want Tax Benefits since all SEP contributions are deductible for employers.
• You Want To Shelter Interest Earnings since interest earned in an IRA is not taxed until withdrawn (generally upon retirement).

Ready to open a self directed SEP IRA?  It can be done in 3 easy steps!

SIMPLE IRAs: Tax Advantages and Retirement All Rolled into One

SIMPLE is an acronym for Savings Incentive Match Plan for Employees (SIMPLE). A SIMPLE IRA allows employers to plan for their employees’ retirement, and their own. This retirement plan is specifically designed for small businesses with 100 employees or less. Even after an employer exceeds the 100-employee limit, they are eligible to continue it for two years.

A SIMPLE IRA allows employees to make salary-reduced contributions and receive matching contributions from their employer.

SIMPLE IRA Contributions and Employer Match

Employers can match employee contributions to SIMPLE IRA plans up to 3% each year. Or, employees can choose a non-elective 2% of compensation. All contributions are made directly to the IRA, with distributions being taxed as ordinary income.

Contribution limits for calendar year 2009 are $10,500 for salary deferral. If you are 50 years or older, a catch-up contribution of $2,500 may be made in addition to 3% of your salary. Access full information on contribution limits in Internal Revenue Service Publication 560.

Ideal Candidates for SIMPLE IRA

If you fall into one of the following categories, you should look into a SIMPLE IRA.

• Desire to Maximize Retirement Investments. With a SIMPLE IRA, you can take advantage of traditional and non-traditional investment vehicles like real estate, notes, tax liens and mortgages, among many more.
• Small Business: A small business with 100 employees or less.
• Employee Contributions. You want employees to contribute to their retirement plan via payroll deductions.
• No-Fuss IRA Setup. A simple, straightforward retirement plan to set up and oversee.
• Recruiting. If you are seeking to attract and retain the best and brightest employees.
• IRA Contribution Flexibility. Retirement plan contribution flexibility.
• Reduce Taxes. You want to reduce business taxes.

Ready to open a SIMPLE IRA?  Contact us and we'll help you get started.