May 31

Make the Most of Your IRA

Younger people probably won’t be seeing as much from their Social Security as today’s retirees are seeing.  As such, you should be doing everything you can to put aside money for retirement.  One of the major benefits anyone can utilize is an Individual Retirement Account or IRA.  Use these tax advantaged accounts to make the most of your savings.  If you’re not already saving, what are you waiting for?  Here’s a few tips to make the most of your IRA plan(s).

First thing’s first, you need to put aside money for your retirement.  This concept is “pay yourself first”.  If you let bills and normal expenses eat up your paycheck, you won’t have anything left to save for yourself.  If possible, consider using auto-payment where a percentage of your paycheck goes straight to your IRA.  This way, you won’t have to think about it every week.  If you receive a bonus or pay raise, be sure your IRA sees some of that too.

Make the most of your retirement savings by funding an IRANext, don’t use a savings account to save for long-term goals like retirement.  Interest rates are low, so you’re money isn’t earning as much as it could in a retirement account.  It is good to have an emergency fund for unexpected expenses like medical issues or car problems.  Your money compounds in an IRA.  You’ll see earnings on your initial investments.  Those earnings will also start to earn for you as well…and so on and so on.

Why is an IRA better than a 401k?  For one, you control the plan, not your employer.  You choose who holds your account and what investments you want for the plan.  For those who want more control, you can open a self-directed IRA where you are the custodian of the plan.  This allows you to invest in things many financial institutions don’t allow (like real estate, precious metals and small businesses).  Further, if you leave a job, you have to figure out what to do with the old 401k.  If your employer offers a solid plan plus a company match, it’s a good idea to invest in both types of plans.

Finally, there are two types of IRA options.  The traditional plan (which is funded with pre-tax money) and the Roth plan (which is funded with after-tax money).  The major benefit of the traditional plan is that up-front tax break.  You don’t pay taxes until you take distributions during retirement.  Roth IRAs don’t offer the immediate tax break.  However, all distributions (including earnings) are tax free when withdrawn.  Choosing which options is primarily based on your personal tax situation.  If you are in a higher tax bracket now than you will be when you retire, lean towards the traditional plan and vice versa for the Roth.  Again, to be better diversified, you should contribute to both types of plans.

Whatever method of retirement saving you choose, you should get started as soon as possible and contribute as much as you can afford to each month.  If you have any questions or need help opening up an IRA or to find out the major benefits of the self-directed plan, contact the IRA experts at the IRA Financial Group today at 800.472.0646.

May 30

Back to Basics – Contributing to a Traditional AND Roth IRA

When dealing with a workplace 401k, you don’t have control over many things.  However, with an Individual Retirement Account (IRA), you can choose where you open the plan and what to invest in.  Just about anyone can open an IRA.  Further, you can elect to contribute to both a traditional IRA and a Roth IRA is you choose.

The most basic need for contributing to any retirement plan is having earned income for the year.  This is usually from wages earned at a job or commissions received as a self-employed individual.  As usual, there are some people who are excluded from contributing to one or both types of IRAs.  If you are over age 70 1/2, you cannot contribute to a traditional plan.  There is no age limit when it comes to a Roth.  However, if you make too much money, you cannot contribute directly to a Roth.  For example, if you are a single filer, you cannot earn more than $127,000 in 2013.  The limit is $188,000 if you file jointly with your spouse.

Just like with your 401k, there are contributions limits for an IRA.  For 2013, the max you can contribute is $5,500 if you are under age 50 and $6,500 if you are 50 and older.  If you have multiple IRAs, that max is for all of them.  If you contribute $2,500 to a Roth, you can only contribute $3,000 to a traditional plan if you are under 50.

Failure to adhere to these contribution limits will cost you.  The IRS will impose a 6% penalty on the excess amount you contribute.  If you exceed the limit, you have until your tax filing deadline to take out the excess contribution plus any earnings you received from it.  This penalty will apply every year until you take the necessary steps to correct the mistake.You can contribute to both a traditional and Roth IRA

What’s the better plan for you?  That depends.  Traditional plans are funded with pre-tax money.  You get an upfront tax break and don’t have to pay taxes until you withdraw funds during retirement.  Roth IRAs are funded with after-tax money.  You don’t get an immediate tax break, but distributions are generally tax free on both the principle and earnings.  If you are in a higher tax bracket now than you think you will be in retirement, then it’s better to opt for a traditional IRA.  If you think you’re earning will be higher later on, go with the Roth.  An ideal situation is to invest in both types so you are diversified.  Lean more to one depending on your unique situation.

If you need help deciding your best course of action and/or are looking to open up an IRA of your own, contact the tax experts at the IRA Financial Group today at 800.472.0646!

May 29

The New Stretch Self-Directed Roth IRA LLC

Stretch Self-Directed Roth IRA LLC will offer tax, investment, and estate planning benefits

IRA Financial Group, the leading provider of self directed Roth IRA LLC structures announces the introduction of its stretch self directed Roth IRA. Unlike the original Roth IRA owner, a non-spousal beneficiary of a Roth IRA is required to take minimum distributions over his or her life expectancy. Note – a spousal beneficiary of a Roth IRA is not required to take a Roth IRA distribution. With IRA Financial Group Self-Directed Stretch Roth IRA LLC, a beneficiary of a Roth IRA can stretch out the tax free benefits of a Roth IRA. “The Self-Directed IRA Stretch Roth IRA LLC offers significant tax, investment, and estate planning benefits for the Roth IRA holder and his or her beneficiaries, “ stated Adam Bergman, a tax attorney with the IRA Financial Group.

The New Stretch Self-Directed Roth IRA LLC In the case of a non-spousal Roth IRA beneficiary, when the beneficiary is relatively young, there is the potential for the distributions to be less than the annual earnings of the Roth IRA, so the Roth IRA grows while the distributions are being taken. Of course, the beneficiary can take more than the minimum, even the entire Roth IRA, at any time tax-free. In other words, using a Self-directed Stretch Roth IRA will allow an individual to transfer tax-free assets to children or other beneficiaries and allow those individuals to benefit from tax-free income while the Roth IRA contributes to grow tax-free.

In addition to the significant tax benefits in using a self-directed Roth IRA LLC to make investments, the Roth IRA also offers a number of very exciting estate planning opportunities.

In general, a self-directed Roth IRA is an after-tax account that allows the Roth IRA holder to benefit from tax-free investment growth so long as a Roth IRA distribution is not taken prior to a five year holding period and the Roth IRA holder is not under the age of 59/1/2 ( a “qualified distribution”). In addition, a Roth IRA holder would not be subject to the required minimum distribution rules (“RMD”).

With IRA Financial Group’s Self-Directed Stretch Roth IRA LLC, the Roth IRA and his or her family could receive tax-free use of your Roth IRA funds over a long period of time. Converting a pre-tax IRA to a Roth IRA could be used as a very valuable estate-planning tool for estate owner’s that would be subject to the estate tax (For 2013 – estates over $5,250,000) as the Roth conversion funds would be paid out of funds subject to estate tax.

IRA Financial Group is the country’s leading provider of “checkbook control Self Directed IRA LLC and Solo 401(k) Plans.. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

 

May 28

Investors Looking to Purchase Farmland with their Self-Directed IRA LLC

Self-Directed IRA LLC investors seeing real estate opportunities in owning farmland with retirement funds.

IRA Financial Group, the leading provider of Self-Directed IRA LLC solutions, reports an increased interest in investors looking to purchase farmland with their retirement funds. “Investors are increasingly looking to purchase farmland with their retirement funds to take advantage of the tax benefits of a Self-Directed IRA LLC,” stated Adam Bergman, a tax attorney with the IRA Financial Group.

nvestors Looking to Purchase Farmland with their Self-Directed IRATo meet the needs of the growing base of investors looking to purchase farmland with their retirement funds, the IRA Financial Group announces the introduction of the Special Self-Directed IRA LLC Farmland Real Estate Solution. With IRA Financial Group’s Special Self-Directed IRA LLC Farmland Real Estate Solution, the IRA holder will have “checkbook control” over his or her retirement funds, allowing the individual to make real estate investments by simply writing a check. IRA Financial Group’s Special Self-Directed IRA LLC Farmland Real Estate Solution will allow the retirement investor to serve as manager of the special purpose IRA LLC and make real estate investments, including farmland, by simply writing a check. “Our Special Self-Directed IRA LLC Real Estate Solution is geared towards any real estate investor looking for a flexible investment and retirement vehicle to make real estate investments tax-free,” stated Mr. Bergman.

Instead of buying real estate with personal funds and being subject to higher income and capital gains tax rates, a Self-Directed IRA Real Estate LLC with Checkbook Control allows one to buy real estate, including farmland, without paying tax. With a Self-Directed Real Estate IRA, all income and gains generated by the IRA investment will flow back to the individual’s IRA tax-free. By using a Self-Directed IRA to make investments, the IRA owner is able to defer taxes on any investment returns, thus allowing the IRA owner to benefit from tax-free growth. Instead of paying tax on the Self-Directed IRA returns of an investment, tax is paid only at a later date when a distribution is taken, leaving the investment to grow tax-free without interruption.

The IRS has always permitted an IRA to purchase real estate, raw land, or flip homes. Farmland can be purchased and rented out to farmers or shares in an operating farm can be purchased, with the profits returning to the IRA. “With IRA Financial Group’s Special Self-Directed IRA LLC Farmland Real Estate Solution, investors can make real estate purchases and generate income and gains while deferring taxes,” stated Mr. Bergman. One major advantage of buying farmland with a Self-Directed IRA and renting it out to farmers is that all rental income generated by the property is tax-deferred until a distribution is taken (Traditional IRA distributions are not required until the IRA owner turns 70 1/2). In the case of a Self-Directed Roth IRA LLC, all gains are tax-free.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading facilitator of Self-Directed IRA plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate, without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

May 24

Importance of Self-Directed IRA Compliance Service

An IRA prohibited transaction issue at the center of a tax court case could have been avoided with IRA Financial Group’s self directed IRA compliance service.

A recent U.S. Tax Court decision highlights the importance of working with tax professionals before using retirement funds to make an investment involving alternative assets. In Peek Vs. Commissioner, 140 T.C. No. 12 (May 9, 2013), two Colorado taxpayers used IRA assets to help them buy a fire-safety business. In a May 9 opinion, a judge ruled that Messrs. Peek and Fleck engaged in a prohibited transaction that terminated their accounts when they bought the business. The facts of the case are that the two men each used $309,000 of assets from their respective IRAs in August 2001 to buy two 50% shares in a corporation. The corporation then paid $1.1 million to buy Abbot Fire & Safety, a provider of fire alarms, sprinkler systems and related equipment. The purchase price consisted of $400,000 of the taxpayers’ IRA assets, a bank loan and other funds, including a $200,000 promissory note personally guaranteed by the two men. The note was secured by their homes. “Based on the facts presented, if Mr. Peck and Mr. Fleck would have worked with a tax attorney at the IRA Financial Group, they would have been told immediately that this transaction would violate the IRS self-dealing rules under IRC 4975, “ stated Adam Bergman, a tax attorney with the IRA Financial Group. As a result, each owed tax of more than $225,000 plus more than $45,000 in penalties.

Make sure you are compliant with your self directed IRAAccording to Mr. Bergman, “the prohibited transaction rules are extremely broad and the penalties extremely harsh (immediate disqualification of entire IRA plus penalty).” As a result each client of the IRA Financial Group is automatically enrolled in an IRA compliance program that allows the client to have a proposed self-directed IRA investment reviewed by a tax attorney to make sure the transaction does not violate any of the IRS prohibited transaction rules under IRC sections 408 and 4975. Mr. Bergman further states that “the IRA owner self directing his or her investments must be especially cautious in engaging in transactions that could compromise his or her best judgment or result in a direct or indirect personal benefit.”

In general, The Internal Revenue Code does not describe what a self directed IRA LLC can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits IRA disqualified persons from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of retirement savings and to prohibit those in control of IRAs from taking advantage of the tax benefits for their personal account. “The facts in Peek vs. Commissioner are such that if the plaintiffs would have sought the advice of a tax professional before engaging in the IRA investment, they would have certainly been told that their proposed transaction violated the IRS prohibited transaction rules under IRC 4975, “ stated Mr. Bergman. “This tax court case is the reason we assign a tax attorney to all of our self-directed IRA clients so they have the opportunity to have a tax professional review their transaction to confirm that it would not violate any of the IRA prohibited transaction rules,” stated Mr. Bergman.

The penalties for engaging in an IRA prohibited transaction are very harsh, according to Mr. Bergman. “If the IRA holder or IRA beneficiary engages in a transaction that violates the prohibited transaction rules set forth under Internal Revenue Code Section 4975, the individual’s IRA would lose its tax exempt status and the entire fair market value of the IRA would be treated as taxable distribution, subject to ordinary income tax. In addition, the IRA holder or beneficiary would be subject to a 15% penalty as well as a 10% early distribution penalty if the IRA holder or beneficiary is under the age of 591/2.”

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading provider of self-directed IRA LLC structures. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

May 23

Tax-free Roth IRA Conversion?

“When you make a nondeductible contribution to a traditional IRA and you immediately convert it to a Roth IRA, 100% of the conversion is nontaxable, right? Not necessarily,” says Robert Klein at MarketWatch.com.  You didn’t get a tax break on the contributions, so why would you have to pay taxes on the conversion?

Some basics first: You may contribute up to $5,500 to an IRA for 2013.  If you’re at least 50 years old, you may contribute another $1,000 as a catch-up contribution.  You have until you reach age 70 1/2 to make contributions to a traditional IRA; there is no age limit for Roth contributions.  You may receive a tax deduction on traditional contributions depending on your filing status, modified adjusted gross income and whether or not you have a workplace retirement plan.

Backdoor Roth IRA ConversionNow, when you take distributions from your traditional IRA that has nondeductible contributions, those contributions will not be taxed.  Earnings, however, will be included as ordinary income.  If you IRA has both deductible and nondeductible contributions, figuring out the tax implications is a bit trickier.  Says Mr. Klein: “It takes into consideration the cumulative amount of previously-unused nondeductible contributions, or “basis,” as a percentage of the previous end-of-the-year value of all of your traditional IRA accounts to determine the taxable amount of distributions in a particular year.”

You can minimize your tax liability by converting to a Roth IRA.  This will eliminate the taxes on your distributions during retirement.  This includes all earnings since the conversion.  However, you must pay the taxes on the amount you convert on the date you perform the conversion.  Note that there is no early withdrawal penalty if you are under age 59 1/2.

There is a way to convert to a Roth without paying taxes; this is known as the backdoor Roth IRA conversion.  For example, you don’t have an IRA account and you then make a nondeductible contributions to a new IRA (meaning you cannot receive a tax break on your contribution).  As soon as your IRA has the funds, you then immediately convert to a Roth IRA.  Since you have no earnings, your conversion is therefore nontaxable.

If you have other traditional IRA accounts when trying to do the backdoor conversion, you will be subject to some tax.  Check out the link above to see an example where you would pay tax on 95% of your conversion.

If you have any questions about this or anything else IRA-related, contact the tax experts at the IRA Financial Group at 800.472.0646.

May 22

Investing in an IRA for a Family Member

Investing in an IRA for a family member (spouse, child, grandchild) is a great idea that will help them be financially secure during retirement and could lower your tax bill.  As always, there are rules that govern these types of IRA investments.

If your spouse leaves the workforce for any reason, the working spouse can contribute to an IRA in the spouse’s name.  Usually, you need earned income (salary and other compensation for working) to fund an IRA.  However, the IRS allows a spouse to fund an IRA for his or her spouse.  So, if you are unemployed or a stay at home parent, you can still save for retirement.

The maximum contribution to an IRA for 2013 is $5,500 plus an additional $1,000 if you are at least age 50.  There are two types of IRAs you can contribute to: the traditional IRA which is funded with pre-tax dollars and the Roth option, which uses after-tax dollars.  The major difference is when you pay taxes.  Traditional plan contributions are tax-deferred and may be tax deductible.  You pay taxes when you withdraw money during retirement.  You don’t get a tax break with Roth contributions, however withdrawals are generally tax-free, both principle and earnings.

Investing in an IRA for a family member is a wise moveThere are restrictions of course.  First off, if your spouse is age 70 1/2 or older, he or she cannot contribute to a traditional plan.  There are also income limitations based on certain factors as well.  If neither spouse has access to an employer-sponsored plan, such as a 401k, then contributions for both spouses are fully deductible, no matter their income.  If each spouse has another plan available to them, they can only fully deduct their contributions if they make less than $92,000 per year.  The deduction phases out up to $112,000.

If only one spouse has a plan available to him or her (as is usually the case in this situation), the working spouse can deduct up to the $92,000 phase out amount.  However, the non-working spouse can deduct even if they earn up to $173,000 (phaseout occurs up to $183,000).

The Roth option is good for those people who expect to pay higher taxes later on in life.  Further, if you don’t think you’ll need your IRA funds during retirement, a Roth is a great way to set your heirs up.  The income limit to contribute to a Roth IRA is $183,000 for couples filing jointly.

If you want to invest in an IRA for a child or grandchild, it’s best to open a Roth IRA for them.  They probably aren’t making too much money so the tax break they would get for a traditional IRA is almost nothing.  The Roth will grow tax-free and they can withdraw contributions anytime tax- and penalty-free.  Plus, if they are using the money for higher education, earning may be penalty-free as well.

The one caveat for funding a child’s IRA is that they must have earned income.  This is defined as wages earned from a job, baby sitting, mowing lawns or even performing chores around the house ( so long as they are reasonably compensated for the tasks performed).  You cannot contribute more than the child earns during the year.  If he or she earns $2,000 at a summer job, that’s the max he or she can contribute to an IRA.

If you have any questions about this or are looking to set up an IRA for a family member, contact the tax experts at the IRA Financial Group who will set you on the right course of action for you and your family!

May 21

More on the SEP IRA

Here’s a great read hailing the benefits of the SEP IRA:

There are few places investors can turn to for a guaranteed return. The very idea of a no-risk return sounds almost mythical in this era of volatility and uncertainty.

Stocks and bonds carry no such distinction. Neither do commodities or currencies. One of the few vehicles that comes to mind is a money-market account, carrying a paltry yield as low as 0.25% that doesn’t even keep pace with record-low levels of inflation.

That’s why I am such a big fan of tax shelters. Even though most people don’t think of tax strategies as an investment, that’s what they are. And there is one little-known retirement account that blows the usual tax shelters out of the water.

What is it? I’ll tell you in a minute.

Whether discussing an individual, small business or large corporation, taxes are frequently the No. 1 expense.

That means any investment in a tax-deferred entity and advanced tax strategies can have a huge impact on taxable income and the bottom line. And in an age when taxes continue to creep higher while interest rates remain at a record low, maximizing the benefit of tax-deferred accounts has never been more important.

But while the IRA (individual retirements account) and 401(k) are great vehicles for many investors, there is a little-known alternative that blows both of them away.

The current-year contribution limit for an IRA is $6,000 while the limit on a 401(k) is $17,500. But this super-charged IRA I am about to reveal leaves both in the dust with a whopping contribution limit of $49,000, or 25% of taxable income. What is it? It’s called a SEP IRA.

the SEP IRA is a great retirement option for small businessesA SEP IRA is a type of traditional IRA for self-employed individuals and small-business owners. (SEP stands for Simplified Employee Pension.)  Any business owner with one or more employees, or anyone with freelance income can open a SEP IRA for themselves or on behalf of their employees.

Tax-deductible contributions from the business on behalf of the participants are deposited into a SEP IRA and held in the employee’s name. Employees of the business are not allowed to contribute — that is the responsibility of the employer. Employees are eligible if they are at least 21 years old, have worked for the company in three of the last five years and received at least $550 in compensation during the year.

As an employer, a company is not required to make a contribution every year. But when an employer does decide to make a contribution, they are required to fund the SEP IRA of every eligible employee.  Each individual SEP IRA contribution is then capped at $49,000 annually, or 25% of total annual income.

The value of this super-charged IRA account cannot be overstated.

At the highest level, it is a huge tax shelter and amazing retirement vehicle for the owner of a company and the employees. The robust contribution limits of the SEP IRA far exceed those of the regular IRA and the small-business 401(k), which is usually loaded with hidden fees that make them extremely expensive.

That means the robust contribution limits for the SEP IRA can have a huge impact on taxes at the end of the year. In an environment of record-low interest rates where the 10-year Treasury note is yielding 1.6%, reducing your tax bill is no different than putting huge, no-risk returns in your pocket. And with robust contributions limits, the SEP IRA is an unparalleled vehicle for reducing taxes to put money back into your pocket.

For the standard corporate tax rate of 35%, a company with a $100,000 profit would pay $35,000 in taxes. But with a 25% contribution to a SEP IRA, the company’s taxable profit falls to just $75,000, creating a total tax bill of just $26,000 and creating $9,000 in tax savings.

That is an immediate, no-risk return for any company, owner or employees taking advantage of the robust contribution limits of the SEP IRA.

In addition to significantly reducing taxable profits, a contribution to a SEP IRA can provide added savings by pushing companies and participants into lower tax brackets. Although regular C corporations pay a flat 35% federal tax, flow-through entities like an S-Corp and LLC have business owners paying corporate taxes at the personal-income level, creating an opportunity for small-business owners to fall into a lower tax bracket with a robust SEP IRA contribution.

Another great benefit of the SEP IRA is its wide offering of investment options. Unlike the 401(k), where plan participants are forced to choose from a narrow list of investment options that usually includes 15-20 mutual and target-date funds, SEP IRA investors can choose from a long list of individual stocks, commodities, currencies and ETFs (exchange traded funds).

Withdrawal limits on the SEP IRA look a lot like a 401(k) and regular IRA. Plan participants become eligible for regular distributions at the age of 59 ½. Minimum required distributions begin at age 70. Qualified distributions from the SEP IRA would be handled the same way as a regular IRA as taxable income.

The Investing Answer: Setting up a SEP IRA could hardly be any easier. After SEP IRA participants have selected a brokerage firm that provides the right mix of support and service, opening a new account usually takes less than 15 minutes and can be done electronically without any in-person meetings. Then the SEP IRA account holder has a huge universe of individual stocks, ETFs, commodities and currencies to choose from while picking up huge tax savings in this little known retirement account.

If you have any questions about the SEP IRA or are looking to open one for your small business, contact the tax experts at the IRA Financial Group at 800.472.0646.

May 20

Inheriting vs. Assuming an IRA

It’s best when opening an IRA that you designate one or more beneficiaries.  When you pass away, your IRA will then go to your beneficiary without having to go through probate.  There are two ways that your plan can pass on to your beneficiary: inheriting it or assuming it.  The difference depends on who your beneficiary is.

Let’s look at the difference between the two.  When an heir inherits an IRA, he or she receives the assets in the plan when someone else dies.  The decedent must have named you in writing as a beneficiary.  The original IRA owner may have names more than one beneficiary so you may have to share the assets with others.  If an heir assumes an IRA, he or she transfers the assets into his or her sole name.  Thus, the IRA will be treated as if it had always belonged to you.

Inherited IRA vs. assumed IRAOnly a spousal heir has the option of assuming an IRA and even they don’t always have that option.  The option is only available if he or she is the sole beneficiary.  Therefore, if the IRA is split among heirs, even the spouse does not have the option of assuming the IRA.

If allowed to assume the plan, you will convert the assets into an IRA in your own name.  If you already have an IRA, you can transfer the assets directly into it.  If not, you may open up a new IRA.  Now that that the IRA is only in your name, you can contribute to it just as you would any IRA plan.  The major advantage is that you don’t need to start taking distributions until you reach age 70 1/2.

If you inherit the IRA, you may not title it under your name.  It must be titled as belonging to the decedent with you as a beneficiary.  You may not contribute to an inherited IRA and you cannot roll it over into a new IRA.  Further, you must take distributions based on your life expectancy or that of the decedent’s, as determined by the IRS.

Finally, if the inherited IRA is the Roth option, you have the option of taking out the money as a lump sum, taking the entire distribution within five years of the original owner’s death or take distributions based on your life expectancy.  We’ll go deeper into this subject at a later date.

If you have any questions regarding this or any other IRA matters, feel free to contact the tax experts at the IRA Financial Group today!

May 20

Free Webinar on Retirement Tax Planning Opportunities for 2013 & Beyond on Wednesday at 7:00PM EDT

IRA Financial Group, the leading facilitator of Self-Directed IRA LLC and Solo 401(k) Plans, announces a new free webinar as part of its educational series on the area of tax planning opportunities available for individuals and small business owners with retirement funds. The free webinar will be aimed at offering investors an extensive array of facts and information involving using Self-Directed retirement plans to maximize retirement and tax benefits. “The free webinar is designed to provide investors with a detailed overview of the Self-Directed retirement plan topic being discussed,” stated Adam Bergman, a tax attorney with the IRA Financial Group. “The Retirement Tax Planning Opportunities for 2013 & Beyond webinar is designed to provide investors with the tools necessary to understand the tax rules involved in Self-Directed IRA and Solo 401(k) retirement plans and how they can maximize their 2013 tax return,” stated Mr. Bergman.

free webinar for solo 401k and self directed IRA plansWith a new Medicare tax and uncertainty over tax rates for high-income individuals starting in 2013, learn what planning opportunities may apply to you. The Webinar will focus on a number of tax planning opportunities available for individuals and small business owners with retirement funds for 2013 and beyond.

The Webinar will be given by Adam Bergman, Esq, a tax attorney with the IRA Financial Group. The webinar will focus on the following topics:

·    The current environment – uncertainty rules
·    Impact of the Medicare taxes as well as Congress’ actions with respect to the Bush-era tax cuts
·    Deferring income in the age of increasing tax rates
·    How your IRA or Solo 401(k) Plan can help you minimize tax on your 2013 tax return
·    Combating higher tax rates with a Roth IRA or Roth Solo 401(k) Plan
·    In light of higher income taxes – should I consider a Roth conversion?
·    Tapping into your retirement funds without tax or penalty
·    Retirement savings is the best answer to higher income tax rates

To sign up for the free webinar, please click on the link below:

https://www3.gotomeeting.com/register/989541182

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the country’s leading provider of “Checkbook Control” Self Directed IRA LLC and Solo 401(k) Plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate, without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.