How it works
Like the IRA account that most of us are familiar with and probably own, the truly self-directed (TSD) IRA is a retirement savings vehicle. It follows the same basic rules as any other IRA – the account holder can’t take a distribution of funds until age 59 ½; any early distributions incur an IRS penalty as well as any tax owed; and other rules better explained by reading up on the subject on the IRS website. With the TSD IRA, an individual puts money aside for retirement savings under a special legal structure specifically set up to limit custodial restrictions, red tape and fees. The process works like this:
- The individual opens an IRA account with a specific custodian.
- A Limited Liability Company is structured in compliance with IRS rules and regulations; it will own the IRA and be managed by you, the IRA participant.
- Depending on the type of IRA structured, gains can be realized tax deferred or tax exempt. For example, a person could set up a Roth TSD IRA, or the classic tax-deferred IRA.
The LLC opens a bank account, and directs the custodian to perform a transfer of assets from the individual's current IRA. Now the LLC's manager - you - can write checks to purchase real estate, notes, securities and more for the benefit of the new TSD IRA.
A TSD IRA is only restricted to the rules of the IRS and arms of federal and state government, not by a company that is in business to manage your funds (such as your brokerage firm).
With a traditional IRA, the account holder is usually limited to investing in stocks, bonds and other financial paper. But with a self-directed IRA, the account holder has the ability to direct the investments himself – and he can buy real estate, bullion, trade Forex or commodities, buy a business, invest in notes, and much more. This is all 100% legal within IRS guidelines. The IRS does dis-allow a few investment types (such as insurance and collectibles), and there are some very specific rules about dealing with what the IRS deems to be "disqualified people;" but other than that, the account holder largely has control over his investments. Contact us with any specific questions about what is and is not allowed within the TSD IRA structure.
Self-directed IRAs have been around as long as traditional brokerage-type IRAs. However, they have been somewhat shrouded in mystery and available at great expense only to the truly wealthy, up until now. The overwhelming majority of IRAs in the U.S. are held in brokerage accounts and invested in stocks and bonds, simply because it is relatively easy and the administrative systems are all in place. It generally has not been an option for the average person to invest in real estate or other “non-traditional” investments via his IRA because brokerage houses do not deal in these types of investments. The self-directed IRA changes all of this. Today, thousands of Americans are discovering that they can have a “truly self-directed IRA” with checkbook control.
Imagine finding your dream retirement home at a foreclosure auction, at a fraction of the price that it's worth - and being able to write a check for it from your TSD IRA account!
Ready to take control of your future? Contact Laurie@MyPowerIRA.com for more information on how to get started.
MyPowerIRA.Com does not sell investments. We are not certified financial planners or attorneys. We work wtih a team of attorneys and financial experts. Investments are not insured and results are not guaranteed. We urge you to consult with your attorney or CPA before making investments.
- The individual opens an IRA account with a specific custodian.
- A Limited Liability Company is structured in compliance with IRS rules and regulations; it will own the IRA and be managed by you, the IRA participant.
- Depending on the type of IRA structured, gains can be realized tax deferred or tax exempt. For example, a person could set up a Roth TSD IRA, or the classic tax-deferred IRA.
The LLC opens a bank account, and directs the custodian to perform a transfer of assets from the individual's current IRA. Now the LLC's manager - you - can write checks to purchase real estate, notes, securities and more for the benefit of the new TSD IRA.
A TSD IRA is only restricted to the rules of the IRS and arms of federal and state government, not by a company that is in business to manage your funds (such as your brokerage firm).
With a traditional IRA, the account holder is usually limited to investing in stocks, bonds and other financial paper. But with a self-directed IRA, the account holder has the ability to direct the investments himself – and he can buy real estate, bullion, trade Forex or commodities, buy a business, invest in notes, and much more. This is all 100% legal within IRS guidelines. The IRS does dis-allow a few investment types (such as insurance and collectibles), and there are some very specific rules about dealing with what the IRS deems to be "disqualified people;" but other than that, the account holder largely has control over his investments. Contact us with any specific questions about what is and is not allowed within the TSD IRA structure.
Self-directed IRAs have been around as long as traditional brokerage-type IRAs. However, they have been somewhat shrouded in mystery and available at great expense only to the truly wealthy, up until now. The overwhelming majority of IRAs in the U.S. are held in brokerage accounts and invested in stocks and bonds, simply because it is relatively easy and the administrative systems are all in place. It generally has not been an option for the average person to invest in real estate or other “non-traditional” investments via his IRA because brokerage houses do not deal in these types of investments. The self-directed IRA changes all of this. Today, thousands of Americans are discovering that they can have a “truly self-directed IRA” with checkbook control.
Imagine finding your dream retirement home at a foreclosure auction, at a fraction of the price that it's worth - and being able to write a check for it from your TSD IRA account!
Ready to take control of your future? Contact Laurie@MyPowerIRA.com for more information on how to get started.
MyPowerIRA.Com does not sell investments. We are not certified financial planners or attorneys. We work wtih a team of attorneys and financial experts. Investments are not insured and results are not guaranteed. We urge you to consult with your attorney or CPA before making investments.