Self Directed IRA’s

Discover the Benefits of a Tax-Free or Tax-Deferred Self Directed IRA

Realize Higher Returns on Investments

Retirement accounts provide the opportunity to save money for the future in a tax-free or tax-deferred environment. However, a Self Directed IRA or may allows you to benefit in a variety of alternative investments with the potential to earn even more.

Retirement plans for individuals come in all shapes and sizes. The most popular include traditional IRAs and Roth IRAs. For small businesses, 401ks, SEP IRAs and SIMPLE IRAS are common. In addition, there are savings plans for special needs, such as Coverdell education savings accounts and health savings accounts

Individuals obtain these accounts for two key reasons:

·    Saving for a need, such as retirement, education or health care.

·    A method for reducing, deferring or eliminating taxes on the gains.

2. An Individual Retirement Account As a Tax-Savings Vehicle

Traditional IRAs offer two big advantages or incentives to encourage people to save for their retirement. First, regular contributions to a traditional IRA or real estate IRA may be tax deductible on an IRA holder’s tax return (IRC Sec. 219(a) and (b)). Second, earnings on a Traditional IRA are not taxed until the IRA holder or beneficiary takes the money out. It is these regular deposits, accrued earnings and the passage of time that combine to produce large account balances. And, with a Traditional Individual Retirement Account, you can choose your investments.

Roth IRA vs. Traditional IRA – Which will you self-direct?

Effective January 1, 1998, IRC Sec. 408A, enacted under the Taxpayer Relief Act of 1997, permits the establishment of a Roth IRA.  A Roth IRA is a type of retirement account whereby contributions are not deductible, but distributions (including earnings) can be tax free if certain circumstances exist, particularly if the account is a Roth Self Directed IRA.

Understanding general tax law will assist in making the decision between Traditional IRAs and Roth IRAs. Your accountant may be able to assist you in determining the account that will best suit you.

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