Brokerage companies earn commissions when you buy and sell stocks, bonds, and mutual funds. They don’t make money when you buy real estate. Further, very few custodians are interested in holding “non-traditional” assets they don’t understand. With the self directed IRA investment plans available to you today, only STC provides “full service” to self directed retirement plan account owners.
Absolutely. In 1974, the Employee Retirement Income Security Act (ERISA) gave all IRA retirement plans this option. In addition to real estate, you can direct your self directed IRA investments into, among other things, mortgages, notes, tax liens, and private businesses. There are restrictions on some investments, but STC will help you navigate through them.
A “rollover” occurs when an individual requests a distribution from an IRA/QRP (Qualified Retirement Plan) and then “rolls” the assets into another IRA. An individual is limited to one rollover per year. A “transfer” is when IRA assets are moved directly from one financial institution to another without the IRA owner taking possession of the assets. Unlike rollovers, there is no limit on how many transfers can be executed in a year.
You can use the equity in the property you expect to purchase to borrow funds on a non-recourse basis. STC can direct you to non-recourse lenders that can assist you with the non-recourse process. Private financing and seller financing are additional options for self directed IRA investments. Furthermore, you can pool your IRA’s funds with those of other people, other types of IRAs, or even your personal funds to buy large properties (i.e. commercial properties).
You cannot invest in Life Insurance Contracts or Collectibles (as defined by the IRS). Also, you may not participate in prohibited transactions.
After you send STC documentation regarding your proposed transaction and the persons to whom funds are to be sent, STC will send checks overnight or wire funds for you within hours of your call.
All income generated from self directed IRA investments must be deposited back into the IRA. Of course there is no income tax on this profit until the IRA begins its annual distributions. However, investors may incur unrelated business income tax (UBIT) on a portion of their investment income if the investment was made using borrowed funds.
There are many potential self directed IRA pitfalls with respect to both prohibited transactions and timely reporting at the state and federal levels. STC’s specialty is structuring transactions in “safe harbors” to avoid such problems and ensure statutory compliance. There are various self directed IRA types, rules and guidelines, STC is here to help you keep your plan in compliance.
You do. No matter your type of IRA plan, your account is truly “self-directed,” which means that you make the investment decisions for your retirement assets in much the same way as you invest outside of your retirement plan. But you don’t invest alone. STC will help you navigate the complex rules that govern prohibited transactions so you can focus on making the best investment decisions.
Your assets are co-managed by you and STC. You make all investment decisions, and we take care of all of the paperwork and reporting details. Once you make an investment, STC will keep your books and records, coordinate the custodianship of your assets, oversee the annual asset valuation, and file all required annual reports.
There are many advantages to using an LLC to own your IRA’s assets. The LLC structure offers maximum investment flexibility, provides asset protection, allows for “checkbook control”, simplifies asset titling, eases pooling of assets, and enables immediate response to investment opportunities.
Yes. You and your IRA can purchase an investment together. However, since you cannot sell property to your IRA, transactions between you and your IRA retirement plan involving an asset after that asset is purchased are prohibited.
There are many self directed IRA pitfalls, STC is here to help you stay in compliance with guidelines and regulations.
STC has an initial fee that covers the setup of your self directed IRA’s LLC and all associated transactions and documentation, and we have an all inclusive yearly administrative fee.
STC is proud of its superior customer service. We have full-time CPAs and attorneys on staff who are available to answer your technical questions at any time. STC also provides frequent webinars and other educational events for our clients and their professional advisors. With the different self directed IRA investment opportunities available to you, STC is here to keep you up to date and answer any questions you may have.
No. Your IRA can purchase real estate anywhere.
A self directed IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement. Provided you meet certain Self Directed IRA rules and income guidelines, this traditional IRA allows you to deduct your contribution in the tax year it is made, and investment earnings accumulate tax deferred. Upon reaching retirement age (59½ years old), distributions are treated as ordinary income. If you take a distribution before reaching retirement age, you will incur a 10% penalty as well as federal and state income taxes. You must begin taking distributions at age 72.
Contributions to a self directed Roth IRA are made on an after-tax basis, meaning that contributions to your Roth IRA are not deductible. However, investment earnings accumulate without tax and once you have reached retirement age distributions are tax-free. Also, there are no mandatory distribution requirements and self directed IRA rules with a self directed Roth IRA.
Subject to self directed IRA rules and income limits, you may contribute up to $6,500 in the 2023 tax year to either your Traditional or Roth IRA. If you are 50 years old or older, you may contribute up to $7,500.
Among others, you may rollover a Traditional IRA, Roth IRA, SEP IRA, 401(k), or 403(b). In addition, you may consolidate multiple retirement accounts into one IRA. For example, if you have two 401(k) accounts and IRA open with a former employer, you may rollover all three accounts into one self directed IRA plan.
You cannot invest in Life Insurance Contracts or Collectibles (as defined by the IRS). Also, you may not participate in prohibited transactions. As an self directed IRA owner, if you violate these rules, you may forfeit your entire IRA. There are many self directed IRA rules and stipulations, so it is important that you work with competent advisors to help you avoid such transactions.
Need some help understanding the ins-and-outs of self-directing your retirement investments? Then you've come to the right place. In this STC webinar you'll: