When it comes to investing for retirement, the stock market isn’t the only option. Self-Directed IRAs are great for putting you in charge of your money and where it gets invested. At iPlanGroup, our goal is to make you aware of and comfortable with the fact that it’s permissible to be in control of your own investments.
YOU’RE IN CONTROL
We will open doors to a great selection of alternative investment options for anyone with an iPlan Self-Directed IRA
Here are some of the unique investment options available to you as a self-directed investor:
- Accounts receivable financing
- Equipment leasing
- Boat Slips
- Golf courses
- Oil and gas investments
- Private Limited Partnerships, Limited Liability Companies, and C-corporations
- Airplane hangers
- Mobile home parks
- Private Stock Offerings/Private Placements
- Judgments/structured settlements
- Notes secured by automobiles
- Unsecured Promissory Notes
TAX DEFERRED STATUS
Maintaining Your Tax-Deferred Account Status
To maximize the growth of your investments, you need to keep your IRA within the tax-free guidelines so as not to subject your funds to taxation and penalties. For you to be in control of your retirement funds, you need to ensure that all your self-directed transactions don’t disqualify your IRA from the tax-free benefits you are entitled to.
As your iPlanGroup Self-Directed IRA is a trust account for your benefit when you retire, and for your family’s financial future, all funds – regardless of which investment opportunity you decide to invest in – must flow through your Self-Directed account. If you are investing in real estate, for example, the escrow must be opened in the IRA account name. Earnest money deposits are paid from the IRA, all investing is for the benefit of your IRA, and all investment expenses are paid from the IRA. When you invest through a Self-Directed account, your IRA, not you, owns the investment. You own the account.
SELF-DEALING AND PROHIBITED TRANSACTIONS
Self-Dealing can be summarized as a transaction that can benefit you personally instead of your IRA. Whereas a Prohibited Transaction refers to the improper use of your IRA by yourself or any person disqualified, this means parties related to your IRA. Internal Revenue Code Section 4975 states: “An IRA cannot engage in any transaction (direct or indirect) with anybody or anything considered related to the IRA.” Although you are able to invest your IRA in almost any type of investment, there are a few investments that are considered prohibited for your Self-Directed IRA.
To find out what investments are prohibited you should look at Internal Revenue Code Section 408, which will give you some more information. All these references to Internal Revenue Codes may look complicated, but they really aren’t. You just need to take them into consideration when deciding on your Self-Directed IRA investment choices.