Aug 31

The Real Estate IRA

What is a Real Estate IRA LLC?

A Real Estate IRA LLC is generally also referred to as a Self Directed IRA LLC with “Checkbook Control”. A Real Estate IRA LLC or Self-Directed IRA LLC with “Checkbook Control” plan is an IRS and tax court approved structure that will allow you to use your IRA funds to purchase real estate or make almost any other type of investment tax- free!

With a Real Estate IRA LLC you will never have to seek the consent of a custodian to make a real estate investment or be subject to excessive custodian account fees based on account value and per transaction.

To establish a Real Estate IRA LLC with “Checkbook Control” structure, a limited liability company (“LLC”) is established that is owned by the IRA and managed by the IRA account owner (you). The passive custodian then transfers the IRA owner’s funds to the new IRA LLC bank account. As the manager of the IRA LLC, the IRA owner will have the authority to make real estate investment decisions on behalf of the IRA providing the IRA owner with “checkbook control” over his or her IRA funds.

When you find a real estate investment that you want to make with your IRA funds, simply write a check or wire the funds straight from your Self-Directed IRA LLC bank account to make the investment. The Self Directed IRA LLC with “checkbook control” allows you to eliminate the delays associated with an IRA custodian, enabling you to act quickly when the right real estate investment opportunity presents itself. “Checkbook Control” is especially important when it comes to making real estate or tax liens investments, since custodian delays could cause you to lose an investment opportunity.

Real Estate is an IRS Approved Investment

The IRS has always permitted real estate to be held inside IRA retirement accounts. Investments with a Real Estate IRA are fully permissible under the Employee Retirement Income Security Act of 1974 (ERISA). IRS rules permit you to engage in almost any type of real estate investment, aside generally from any investment involving a disqualified person.

Types of Real Estate Investments That Can be Made Using a Self-Directed IRA LLC

With a Self-Directed IRA LLC with “checkbook control,” you will have the ability to invest in almost any type of real estate investment.

Below is a partial list of allowable real estate investments:

  • Residential or commercial real estate
  • Raw land
  • Foreclosure property
  • Mortgages
  • Mortgage pools
  • Deeds
  • Tax liens
  • Domestic real estate
  • Foreign real estate
  • Vacation homes
  • Rental units
  • Condos or coops
  • Farm land

A Real Estate IRA LLC Offers Growth Potential

A Self-Directed Real Estate IRA LLC can offer the opportunity to greatly accelerate the growth in your retirement portfolio. With a Real Estate IRA LLC you can take advantage of the high growth real estate investment sector while benefiting from the tax-free IRA benefits.

As an alternative to the stock market, income-producing real estate properties can provide consistent income as well as long-term gains through appreciation.  There are no limitations on the types of properties that can be held by a Real Estate IRA LLC. A few real estate investment possibilities include domestic or foreign residential or commercial real estate, industrial buildings, raw land, and farm land. You can also invest in real estate related notes, liens & options.

Real Estate IRA in Today’s Market

The residential and commercial real estate market has taken a dramatic downturn generally due to the sub-prime mortgage meltdown. While it’s a bad real estate market for current owners and landlords, it’s a great investment market for real estate investors with capital. The Real Estate IRA LLC is perfect for any person looking to diversify their retirement funds by investing in the high growth real estate market. With a Real Estate IRA LLC, you can act quickly on a great real estate investment opportunity. When you find a real estate investment that you want to make with your IRA funds, as manager of the new IRA LLC, simply write a check or wire the funds straight from your Self Directed IRA LLC bank account to make the real estate investment. The Self Directed IRA allows you to eliminate the delays associated with an IRA custodian, enabling you to act quickly when the right investment opportunity presents itself.

Use Leverage with your Real Estate IRA LLC

The Real Estate IRA LLC can be utilized when making a real estate investment all in cash, or may be used when using a non-recourse loan to fund an investment. A non-recourse loan is the only type of loan allowed for a Self Directed IRA. A nonrecourse loan is a secured loan (debt) that is secured by a pledge of collateral, but for which the borrower is not personally liable. Whereas, a recourse loan is a loan for which the borrower is personally liable. Recourse loans are no permitted when using IRA funds. Note – if nonrecourse leverage used, the debt-financed portion of the investment will likely trigger a tax under the Unrelated Debt Financed Income rules (UDFI).

A Real Estate IRA Eliminates or Reduces Custodian Costs

With a Self-Directed Real Estate IRA LLC with “Checkbook Control”, you, as manager of the IRA LLC, can act quickly on a great real estate investment opportunity. With a Real Estate IRA LLC, when you find a real estate investment that you want to make with your IRA funds, simply write a check or wire the funds straight from your Self-Directed IRA LLC bank account to make the investment. The Self-Directed IRA LLC allows you to eliminate the delays associated with an IRA custodian, enabling you to act quickly when the right real estate investment opportunity presents itself.

Gaining “Checkbook Control” is Quick & Easy

The IRA Financial Group will take care of setting up your entire Real estate IRA LLC “Checkbook Control” structure. The whole process can be handled by phone, email, fax, or mail and typically takes between 7-21 days to complete, the timing largely depending on the state of formation and the custodian holding your retirement funds. Our in-house tax and ERISA professionals are on site greatly reducing the set-up time and cost. Most importantly, each client of the IRA Financial Group is assigned a tax professional to help with the establishment of the Self-Directed IRA LLC Checkbook Control structure. You will find that our fee for this service is significantly less than other companies that perform the same or similar services.

The Real Estate IRA LLC “Checkbook Control” Process

STEP 1: A Self-Directed IRA account is established with an IRS approved and FDIC backed passive custodian.

STEP 2: Retirement funds are transferred to the new Self-Directed IRA account tax-free!

STEP 3: A Limited Liability Company (LLC) is formed with the IRA account owner designated as Manager and the IRA as owner (member) of the LLC.

STEP 4: At the direction of the IRA owner, the passive custodian invests the IRA funds into the newly formed IRA LLC. One or more IRAs can be used to fund the IRA, including Traditional, Roth, and SEP IRAs.

STEP 5: The Manager of the new IRA LLC (the IRA owner) directs all, or a portion, of the IRA funds held in the new LLC bank account for investment.

STEP 6: The LLC makes a real estate investment using IRA funds and all income and gains generally flow back to the LLC tax-free!

Get Started with your “Checkbook Control” Real Estate IRA LLC today!

Please contact one of our IRA Experts at 800-472-0646 for more information.

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Aug 28

Purchasing American Eagle Coins with a Self-Directed IRA LLC

The IRS does not list the type of assets or investments that may be purchased with retirement funds but does indicate which categories of assets or investments are not permitted.

The categories of transactions that are not permitted to be purchased using a Self-Directed IRA LLC can be found in Internal Revenue Code Sections 408 & 4975.

When it comes to coins or metals, Internal revenue Code Section 408 is generally the provision that applies. In general, collectibles such as artworks, rugs, stamps, certain coins, beverages and antiques, etc. are not allowed within a Self-Directed IRA LLC pursuant to Internal Revenue Code Section 408.

Using a self-directed IRA to purchase American Eagle coins tax-free

Using a self-directed IRA to purchase American Eagle coins tax-free

Internal Revenue Code Section 408 is specific as to what defines a collectible. Some notable exceptions are allowed for certain gold (such as American Eagle) and silver coins and any coins issued by a state. Legislation in 1997 (Technical and Miscellaneous Revenue Act of 1988 – TAMRA) further liberalized the rules for IRAs by making reference to specific definitions of acceptable coins in USCS, title 31; IRC sections 5112(a), (e) and (k); the Commodity Exchange coins that would not be treated as a collectible to “certain gold and silver coins issued by the United States Government.”

This change, in general, resulted in a windfall for individual collectors as well as coin and precious metal dealers (all of the coins allowed must be minted by the U.S. government or the states).

The Law

Below please find the relevant sections in Internal Revenue Code Section 408(m) that relate to     purchase of coins:

(3) Exception for certain coins and bullion

For purposes of this subsection, the term “collectible” shall not include—

(A) any coin which is—

(i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112 (a)

of title 31, United States Code,

(ii) a silver coin described in section 5112 (e) of title 31, United States Code,

(iii) a platinum coin described in section 5112 (k) of title 31, United States Code, or

(iv) a coin issued under the laws of any State, or

31 U.S.C. § 5112 refers to Denominations, specifications and design of coins.

(a)The Secretary of the Treasury may mint and issue only the following coins:

(1) a dollar coin that is 1.043 inches in diameter.

(2) a half dollar coin that is 1.205 inches in diameter and weighs 11.34 grams.

(3) a quarter dollar coin that is 0.955 inch in diameter and weighs 5.67 grams.

(4) a dime coin that is 0.705 inch in diameter and weighs 2.268 grams.

(5) a 5-cent coin that is 0.835 inch in diameter and weighs 5 grams.

(6) except as provided under subsection (c) of this section, a one-cent coin that is 0.75 inch in diameter and weighs 3.11 grams

(7) A fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold.

(8) A twenty-five dollar gold coin that is 27.0 millimeters in diameter, weighs 16.966 grams, and contains one-half troy ounce of fine gold.

(9) A ten dollar gold coin that is 22.0 millimeters in diameter, weighs 8.483 grams, and contains one-fourth troy ounce of fine gold.

(10)   and contains one-tenth troy ounce of fine gold.

(e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in

quantities sufficient to meet public demand, coins which—

(1) are 40.6 millimeters in diameter and weigh 31.103 grams;

(2) contain .999 fine silver;
(3) have a design—

(A) symbolic of Liberty on the obverse side; and

(B) of an eagle on the reverse side;

(k)The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.

Hence, American Eagle coins are not treated as collectibles pursuant to IRC 408(m) and may be purchased using retirement funds, including a self-directed IRA LLC.

To learn more about purchasing and holding coins with a Self-Directed IRA LLC, please contact one our tax self-directed IRA tax professionals at 800-472-0646.

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Aug 26

How to Use a Self-Directed Roth IRA to Invest in Options

When it comes to making investments with a self-directed Roth IRA LLC, the IRS generally does not tell you what you can invest in, only what you cannot invest in.  The types of investments that are not permitted to be made using retirement funds is outlined in Internal Revenue Code Section 408 and 4975.  These rules are generally known as the “Prohibited Transaction” rules.

In addition, to the Prohibited Transaction rules, the IRS imposes a levy or tax on certain transactions involving IRA funds.  In general, when one uses IRA funds to invest in an active business, such as a restaurant, store, factory that is operated through a passthrough entity such as a Limited Liability Company or Partnership or used nonrecourse financing, such as a nonrecourse loan or margin in a stock or trading account, a percentage of net profits or income generated by that activity could be subject to a tax. The tax imposed is often referred to as Unrelated Business Taxable Income or UBIT or UBTI.  The UBTI rules are generally outlined in Internal Revenue Code Sections 512-514.

How to Use a Self-Directed Roth IRA to Invest in OptionsThe reason the UBTI tax rules do not impact most retirement investors, is that Internal Revenue Code Section 512(b) provides a general exemption for the following categories of income generated by a retirement account:  dividends, interest, royalties, rental income, and capital gain type transaction, As a result, since the majority of retirement investors purchase publicly traded company stock, which is exempted from the UBTI tax pursuant to Internal Revenue Code Section 512, the UBTI tax rules are not widely known.

When it comes to investing in options with a self-directed Roth IRA LLC, the question then becomes whether the investment would trigger the UBTI rules. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.

According to the IRS , any gain from the lapse or termination of options to buy or sell securities is excluded from unrelated business taxable income. Note – the exclusion is not available if the organization is engaged in the trade or business of writing options or the options are held by the organization as inventory or for sale to customers in the ordinary course of a trade or business. Hence, if option trading is not being done as an active trade or business, then using a self-directed Roth IRA LLC to invest in options would not trigger the UBTI tax rules.

For more information on using a self-directed Roth IRA LLC to invest in options, please contact a tax professional at the IRA Financial Group at 800-472-0646.

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Aug 25

UDFI and the Self-Directed IRA

What is UDFI?

Internal Revenue Code Section 514 requires debt-financed income to be included in unrelated business taxable income. It was enacted in 1969 for reasons best understood in their historical context.

Under Internal Revenue Code Section 514 , if an exempt organization owns “debt-financed property”, some portion of each item of gross income from the property, and a like portion of all related deductions, are included in unrelated business taxable income, whether the income is in the form of rent, interest, gain on disposition of the property, or some other character. Property is debt-financed if it is held for the production of income, its use is not substantially related to the organization’s exempt purposes, and there is acquisition indebtedness with respect to the property. The term “acquisition indebtedness” generally includes any liability incurred before, contemporaneously with, or after the acquisition or improvement of the property if it arose because of the acquisition or improvement or if the need for the indebtedness was foreseeable at the time of the acquisition or improvement.

Under Internal Revenue Code Section 514(b)(1), property is “debt-financed property” if it is held to produce income and “acquisition indebtedness” with respect to the property exists at any time during the taxable year (or, in the case of a disposition, at any time during the preceding 12 months). The application of Internal Revenue Code Section § 514 has a wide application. For example, it has been held that securities purchased on margin can be debt-financed property.

How is the UBTI tax on UDFI calculated?

Gross income “derived…from or on account of” debt-financed property is unrelated business income in an amount equal to the income multiplied by the following fraction (the “debt/basis percentage”):

Average acquisition indebtedness
——————————–
Average adjusted basis

For example, if the average acquisition indebtedness is $50 and the average adjusted basis is $100, 50% of each item of gross income from the property is included in UBTI.

The debt/basis percentage is recomputed annually. Normally, the average acquisition indebtedness for any taxable year is the average of the acquisition indebtedness during the portion of the year when the organization owns the property. The average is computed by determining the amount of acquisition indebtedness on the first day during each month on which the organization holds the property, adding these amounts together, and dividing by the number of months and partial months during the year when the property is held. Assume a Self Directed IRA LLC borrows $300 to purchase a building on July 10 of year 1 and makes principal payments on the debt of $20 on July 20 and on the twentieth day of each succeeding month during the year. Average acquisition indebtedness is $250 (sum of $300, $280, $260, $240, $220, and $200, divided by six). However, in determining the includable portion of gain or loss on a disposition of the property, the average acquisition indebtedness is the highest amount of acquisition indebtedness during the 12-month period ending with the date of the disposition.

How is UDFI calculated on the sale of a debt-financed asset?

When a debt-financed asset is sold, a special rule applies for the purpose of calculating the taxable gain. The property’s average adjusted basis is the average of the adjusted basis as of the first day during the year in which the property is held by the organization and on the day the property is sold or disposed of. The percentage of gain taxed is the percentage that the average adjusted basis on sale or other disposition of debt-financed property is of the highest amount of acquisition indebtedness with respect to the property during the twelve-month period ending with the date of the sale or other disposition. The regulations permit adjustments to basis that include decreases in basis for depreciation for periods since the acquisition of the property and increases in basis for capitalized improvements or additions.

Please contact one of our Self Directed IRA Experts at 800-472-0646 for more information.

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Aug 22

Strong Rental Market Helping to Increase Demand for Real Estate from Self-Directed IRA LLC Investors

High demand for rental properties triggering increased attention for real estate self-directed IRA investors.

IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC solutions, has seen a strong demand from retirement investors looking to use their retirement funds to buy rental income properties. Because of the strong demand for rental properties in light of the hot rental market, many retirement investors are looking to use their retirement funds to purchase rental properties and generate tax-free rental income. “I have talked to many clients who are able to generate $1400-$1600 monthly rental returns on a property that they paid just over $100,000, “ stated Jacky Ospina, a retirement tax specialist with the IRA Financial Group. “Many of our self-directed real estate IRA clients have been able to generate over 10% returns on their rental properties, “ stated Ms. Ospina.

Strong Rental Market Helping to Increase Demand for Real Estate from Self-Directed IRA LLC InvestorsAccording to a number of clients the reason for the strong demand for rental properties is due to the lack of traditional mortgages available to home buyers resulting in strong rental opportunities for investors. “There has been an increasing number of self-directed IRA purchasing rental properties as a means of taking advantage of a strong rental market as well as generating a strong income stream, “ stated Adam Bergman, a tax partner of the IRA Financial Group.

IRA Financial Group’s Self-Directed IRA for real estate investors, also called a real estate IRA with checkbook control, is an IRS approved structure that allows one to use their retirement funds to make real estate and other investments tax-free and without custodian consent. The Self-Directed IRA LLC involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the Roth IRA custodian) and managed by the IRA holder or any third-party. As manager of the IRA LLC, the IRA owner will have control over the IRA assets to make the investments he or she wants and understands

The IRS has always permitted one to use retirement assets to purchase real estate rental properties. “With IRA Financial Group’s self-directed IRA LLC solution, investors can make real estate purchases and generate tax-deferred rental income or tax-free rental income in the case of a self-directed Roth IRA. “One major advantage of buying rental properties with a Self-Directed IRA is that all rental income generated by the property is tax-distribution until a distribution is taken, “ stated Mr. Bergman.

Instead of buying real estate with personal funds and being subject to tax on the income or upon the disposition of the asset, a Self Directed real estate IRA LLC with Checkbook Control will allow one to buy real estate, including rental properties without paying tax immediately.

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 “checkbook control” Self Directed IRA Facilitator. 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.

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Aug 21

How the Self-Directed IRA Structure Works

Working with our IRA Experts at the IRA Financial Group, establishing a Self-Directed IRA LLC is quick and easy. Our IRA Experts will take care of everything for you. The whole process can be handled by phone, email, fax, or mail. Our expert tax and ERISA professionals are on site greatly reducing the set-up time and cost.

1. Tax-Free Transfer of Funds.

Our IRA Experts will assist you in transferring your retirement funds tax-free from your current custodian to a new FDIC backed/IRS approved Passive Custodian that allows for truly Self Directed IRA investments. With a Self Directed IRA LLC with “checkbook control” you no longer have to pay excessive custodian fees based on account value and transaction fees. Instead, with a “checkbook control” Self-Directed IRA LLC, an FDIC backed IRS approved passive custodian is used. The custodian in the “checkbook control” Self Directed IRA LLC structure is referred to as a “passive” custodian largely because the custodian is not required to approve any IRA related investment and simply serves the passive role of satisfying IRS regulations. By using a Self Directed IRA LLC with “checkbook control” you can take advantage of all the benefits of self-directing your retirement assets without incurring excessive custodian fees and custodian created delays.

What Type of retirement Funds May be Transferred Tax-Free?

Our IRA Experts will assist you in completing all the necessary custodian documents so your retirement funds are transferred to the new passive custodian quickly and without any tax.

All the Passive Custodians we work with are FDIC backed and IRS approved. Once your custodian has transferred your retirement funds to the Passive Custodian, the Passive Custodian will immediately transfer your funds to your new IRA LLC where you as manager of the LLC will have “Checkbook Control” over those funds.

HOW THE SELF-DIRECTED IRA LLC STRUCTURE WORKS2. Creation of the Self-Directed IRA LLC:

Our in-house tax professionals will form your customized Self-Directed IRA LLC in the state of your choosing. Typically the LLC is formed where the initial IRA investment will be made. Because your IRA and not you will be the member of the LLC, your state residence is not relevant in determining the state in which your LLC will be formed. In addition, a specially drafted Self-Directed IRA LLC Operating Agreement, which is required, will be drafted by our tax professionals as well a Tax ID# will be acquired as part of the LLC formation process.

Our IRA Experts will consult with you on the formation of the new Self-Directed IRA LLC to assure that the LLC is formed in the appropriate state.

3. Open a local bank account for the LLC

Our tax professionals will provide you with the appropriate LLC documents so you can open your IRA LLC checking account at any bank or credit union of your choice.

4. Transfer of IRA Funds to New LLC Bank Account

You, as IRA owner, will direct the Passive Custodian to transfer the IRA funds to your new Self-Directed IRA LLC bank account. The IRA would then become a member of the Self-Directed IRA LLC.

5. Appointment of Manager of LLC

As the Manager of the Self Directed IRA LLC with “Checkbook Control”, you will have the freedom to make all investment decisions for your Self Directed IRA LLC quickly and without custodian consent. As Manager of the Self Directed IRA LLC, you will be able to write a check or wire money from the LLC bank account to make an Investment.

6. Self-Directed IRA Investment is Made

As manager of the LLC, you will have the authority to make investment on behalf of your IRA LLC. The Investment must be made in the name of your Self Directed IRA LLC. All income and gains generated by your IRA LLC will generally flow back to the IRA tax-free!

Self Directed IRA LLC Structure

To view a diagram of the Self Directed IRA LLC structure, please select the image below.

Chart

For additional information on the advantages of using a Self-Directed IRA LLC with “checkbook control” to make investments, please contact one of our IRA Experts at 800-472-0646.

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Aug 19

Tax Planning Opportunities for Your Self-Directed Roth IRA

Using a Self-Directed Roth IRA LLC presents a number of exciting tax planning opportunities. Whether you currently have a Traditional IRA or a Roth IRA, the IRA Financial Group’s in-house tax and ERISA professionals have significant experience helping clients use a Self-Directed Roth IRA LLC to maximize their tax benefits and investment returns.

Self-Directed Roth IRA Tax StrategiesInvestment Tax Strategies:

The primary advantage of using a Self-Directed Roth IRA LLC to make investments is that all income and gains associated with the Roth IRA investment grow tax-free and will not be subject to tax upon withdrawal or distribution. This is because unlike traditional IRAs, you are generally not subject to any tax upon taking Roth IRA distributions once you reach the age of 59 1/2. This presents a number of exciting tax strategies, a few of which are described below:

  • Purchasing a vacation home in or outside of the United States with Roth IRA funds and moving in tax-free at age 59 1/2
  • Purchasing a retirement home in or outside of the United States with Roth IRA funds and moving in tax-free at age 59 1/2
  • Purchasing an office building with Roth IRA funds and then using the building for your own business after you turn 59 1/2
  • Investing in precious metals and then taking possession of the metals once you reach the age of 59 1/2
  • Investing in tax deeds and then taking possession of the property personally once you reach the age of 59 1/2
  • Investing in a distressed property – generating large gains and then withdrawing the funds tax-free for personal use upon reaching the age of 59 1/2
  • Investing in an investment fund – generating large gains and then withdrawing the funds tax-free for personal use upon reaching the age of 59 1/2

Roth Conversion Valuation Discount Tax Strategies:

The amount of taxable income on a Roth conversion is based on the fair market value of the IRA assets subject to the conversion. Therefore, the lower the fair market value of the IRA assets the lower the taxes that will be due on the Roth conversion. In general, pursuant to case law, the standard of “fair market value” is an objective test using hypothetical buyers and sellers. Furthermore, in determining the valuation of an LLC, the assets to be valued must be the interests in the entity. The IRA Financial Group’s retirement tax professionals in conjunction with a number of valuation experts have developed a structure that will allow you to take a discount when determining the fair market value of the IRA assets subject to the Roth conversion, thus, reducing the amount of tax you will have to pay on the conversion.

The Roth Conversion Valuation Discount Strategy is based on tested case law. The valuation discounts applicable to an LLC with IRA assets typically fall into two categories: (1) a discount for lack of control, and (2) a discount for lack of marketability. The retirement tax professional at the IRA Financial Group along with a valuation expert will help develop a customized Roth conversion tax strategy that will allow you to take a discount of anywhere from 15% to 35% on the value of the IRA assets subject to the Roth conversion. The Roth Conversion Valuation Discount Strategy can save you thousands of dollars in taxes and is based on established case law.

For example, if you have a Traditional IRA and want to convert to a Self-Directed Roth IRA LLC to purchase raw land, real estate, precious metals, or invest in an investment fund, using the Roth Conversion Valuation Discount Strategy can save you thousands of dollars on the conversion.

To learn more about how a Self-Directed Roth IRA LLC can offer you significant tax and investment benefits please contact one of our IRA Experts at 800-472-0646.

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Aug 18

Why Should You Use IRA Financial Group for Your Self-Directed IRA?

Expertise: 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. With our work experience at some of the largest law firms in the country, our tax professionals’ retirement plan and tax knowledge in this area is unmatched.

Leadership: IRA Financial Group is the market’s leading* Self-Directed IRA and Solo 401K Plan provider. We have helped over 6,500 clients establish IRS compliant Self-Directed IRA and Solo 401k Plans.

Prestige: IRA Financial Group and its founders have been featured on CBS News, PBS Nightly Business Report, and in over 100 major print publications, including Forbes, Fox Business, the Wall Street Journal, CNN Money, USA Today, The San Francisco Chronicle, Dallas Morning News, Law.com, American Lawyer, the Houston Chronicle, the Chicago Tribune, and many more.

Value: With IRA Financial Group, you no longer have to incur excessive fees to establish and administer an IRS compliant Self-Directed IRA LLC or Solo 401k Plan. We are committed to offering our clients customized professional services at a fair and reasonable price and we are able to deliver this by harmoniously blending professionalism, quality and efficiency.

Our Promise: If for any reason you elect to not go through with the Self-Directed IRA LLC structure or Solo 401(k) Plan, you will not be responsible for paying our one-time set-up fee – it’s that simple – no questions asked! Cancel anytime – we understand that in some cases plans change or an anticipated transaction does not materialize and we certainly don’t believe it would be fair to our clients to impose a fee for a structure that won’t be needed.

Access: When choosing the IRA Financial Group, you will have direct and unlimited access to our in-house tax and ERISA professionals, as well as our in-house CPAs. Unlike our competitors, we don’t limit your access to our tax professionals; in fact, you will likely have the opportunity to talk with one of them before you even get started. In addition, each client of the IRA Financial Group is assigned a retirement tax professional to assist in establishing an IRS compliant Self-Directed IRA LLC or Solo 401k Plan structure.

Security: IRS rules require your retirement funds to be transferred from custodian to custodian. We at the IRA Financial Group never have access to your retirement funds in any way. You, as the manager of the IRA LLC or trustee of the 401(k) Plan, will be the only party with direct access to your retirement funds – true “Checkbook Control”.

Integrity: We are guided by the rules of ethical conduct in all that we do. Our relationships with clients are built on trust, respect, and confidentiality.

Results: We are committed to our clients’ satisfaction and strive to meet and exceed our clients’ expectations.

Guarantee: The IRA Financial Group is fully committed to offering IRS compliant self-directed retirement structures and accordingly offers a full IRS audit guarantee in connection with the validity of the Self-Directed IRA LLC and Solo 401(k) Plan. The IRA Financial Group stands by the legality of the Self-Directed IRA LLC and Solo 401(k) Plan and will fully defend its merits against any IRS audit.

We respect your time! You will never be pestered by a salesperson or receive unsolicited emails!

The mission of IRA Financial Group is to empower prospective clients with relevant information needed to make informed decisions on investment activities conforming to tax law and IRS rules.

We leave the ball in your court to decide if you wish to proceed with us. Of course, we would welcome the opportunity to work with you. If you decide to be our client, we will be here for you step-by-step to set up the right structure for you and to help to make sure you implement it correctly.

Once again, we will not send unsolicited follow-up communications from our tax experts – we just respect your privacy and time.

Get started today: Getting started is quick, easy, and inexpensive. We take a small deposit up front to cover LLC state filing fees or Solo 401(k) Plan establishment costs, and our one-time set-up fee is only due once the structure has been established. In addition, our fee can be paid in full using your retirement funds.

Self Directed IRA LLC, Solo 401K, Business Acquisition Solution

IRA Financial Group will take care of setting up your entire IRS compliant Self-Directed IRA LLC or Solo 401K Plan. The whole process can be handled by phone, email, fax, or mail and typically takes between 7-21 days to complete, the timing largely depending on the state of formation and the custodian holding your retirement funds. Our tax and ERISA professionals are on-site greatly reducing the set-up time and cost. Most importantly, each client of the IRA Financial Group is assigned a retirement tax professional to help with the establishment of the Solo 401k Plan. You will find that our fee for this service is significantly less than other companies that perform the same or similar services.

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Aug 15

IRA Financial Group Announces The New Self-Directed IRA Real Estate Rollover Program

Self-Directed IRA rollover program will allow investors to rollover existing retirement funds to buy real estate without tax

IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC solutions, announces the introduction of its self directed IRA rollover program for real estate investors. The newly designed self-directed IRA rollover program for real estate investors will allow one to rollover existing IRA, Roth IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), 457(b), etc. funds to establish a self-directed IRA real estate without tax or penalty. “With growing demand for real estate investments with a self-directed IRA, retirement investors have turned to rolling over existing retirement funds to help fund their self-directed real estate IRA, stated Jacky Ospina, a tax specialist with the IRA Financial Group.

IRA Financial Group Announces The New Self-Directed IRA Real Estate Rollover ProgramAccording to Ms. Ospina, “in order to fund the self-directed IRA LLC structure, there are generally two methods, via an IRA rollover or transfer or IRA contribution. Transfers and rollovers are types of transactions that allow movements of assets between like IRAs – Traditional IRA to Traditional IRA.  An IRA transfer is the most common method of funding a Self-Directed IRA LLC or Self-Directed Roth IRA.”  An IRA rollover generally involves the rollover of funds form a 401(k), 403(b), 457(b), or other employer retirement plan to a self-directed IRA, whereas, an IRA contribution is a contribution of earned income directly into the IRA account. “ As of 2014, the most one can contribute to a Traditional or Roth IRA is $5500 or $6500 if over the age of 50. In the case of a SEP IRA and SIMPLE IRA, the maximum IRA contribution is $52,000 and $12,000 respectively.

“Due to the growing number of retirement account investors looking to use rollover retirement funds to purchase real estate, we are excited to introduce the new self-directed IRA real estate rollover program”, stated Susan Glass, a retirement tax specialist with the IRA Financial Group.

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 and Dewey & LeBoeuf LLP.  IRA Financial Group is the market’s leading “Checkbook Control” Self Directed IRA and Solo 401k Plan Facilitator. We have 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 tax-free and 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.

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Aug 13

Maximum Contribution Limits for Your Self-Directed IRA

The maximum contribution limit for a self-directed IRA for 2014 is $5,500 or $6,500 if you’re age 50 or older, or your taxable compensation for the year, if less. Contributions to a self-directed Roth IRA may be limited based on your filing status and income.

Contributions made to a self-directed IRA LLC must be made to the IRA administrator/custodian and may not be contributed directly to the LLC. Once the IRA contribution is made to the IRA administrator/custodian, the funds can then be transferred to the IRA LLC.

Is my IRA contribution deductible on my tax return?

If neither you nor your spouse is covered by an employer retirement plan, such as a 401(k), your deduction is allowed in full.

For contributions to a traditional IRA, the amount you can deduct may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. In the case of a Roth IRA, contributions aren’t deductible.

Can I contribute to a traditional or Roth Self-Directed IRA if I’m covered by a retirement plan at work?

Yes, you can contribute to a traditional and/or Roth self-directed IRA even if you participate in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA plan). If you or your spouse is covered by an employer-sponsored retirement plan, such as a 401(k) plan and your income exceeds certain levels, you may not be able to deduct your entire contribution.

Can I establish a self-directed IRA if only one spouse has earned income for the year?

Yes. If you file a joint return, you and your spouse can each make IRA contributions even if only one of you has taxable compensation. The amount of your combined contributions can’t be more than the taxable compensation reported on your joint return and cannot exceed the maximum IRA contributions for the year (for 2014 $5500 or $6500 if over the age of 50). It doesn’t matter which spouse earned the compensation.

How can I make a Roth IRA contribution if I earned too much money in 2014?

For 2014, if your modified adjusted gross income is below $181,000 and you file a joint return, you can make a Roth IRA contribution. For those who earned greater than $181,000 during the year, the IRS provides a formula, which will set forth the reduced maximum amount of Roth IRA contributions permitted for the year, if any.

One way to circumvent the Roth IRA income threshold rules, if to simply make an after-tax traditional IRA contribution and then convert the Traditional IRA into a Roth IRA. Since the Traditional IRA contribution was made after-tax there would be no tax on the Roth IRA conversion. This tactic was made possible when the IRS removed the income level restrictions for making Roth conversions in 2010.

Can I Make IRA contributions after age 70½

You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.

To learn more about the self-directed IRA and self-directed Roth IRA contribution rules, please contact a self-directed IRA tax expert at 800-472-0646.

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