Oct 26

Here’s What You Need to Know About the 2018 IRA Contribution Limits

Last week, the IRS announced the new limits for retirement plans for 2018.  Here’s what you need to know about your IRA Contributions –

2018 IRA (including Self-Directed IRAs) Contribution Limit – Limits remain the same as 2017.  For individuals under age 50, the limit is $5,500.  For those 50 and older, you can make an additional $1,000 catch-up contribution, bringing the total limit to $6,500.

Here's What You Need to Know About the 2018 IRA Contribution Limits2018 Deductible IRA Phase-outs – If you participate in en employer-sponsored plan (such as a 401(k) plan), there are income restrictions for a deduction.  If you are single or head-of-household, you can get a full deduction if your adjusted gross income (AGI) is $63,000 or less.  It phases out until an AGI of $73,000.  An AGI above that means you cannot deduct your IRA contribution for the year.  If you are married filing jointly, you receive a full deduction if your AGI is $101,000 or less.  This phases out until an AGI of $121,000.  If you are married filing jointly and your spouse participates in an employer’s plan, the phase-out starts at $189,000 and you are not eligible for a deduction if your AGI is above $199,000.

2018 Roth IRA (including Self-Directed Roth IRAs) Contribution Limit – Again, these are the same as last year (and the same amount as traditional plans).  $5,500 if you are under age 50 and $6,500 if you are age 50+.

2018 Roth IRA Income Limits – You may only contribute directly to a Roth IRA if you are below the income limits.  If you are single or head-of-household, you may make a full contribution if your AGI is less than $120,000.  Your contribution limit phases out until $135,000, in which you may not contribute to a Roth directly.  If you are married filing jointly, an AGI of less than $189,000 allows for a full contribution.  This amount phases out until it reaches $199,000.

Note: You must have earned income in the year(s) in which you wish to contribute to an IRA.  The amount you may contribute is the lesser of the annual limit or your earned income for the year.

SEP IRA – Contribution limit increases $1,000 to $55,000 for 2018.

SIMPLE IRA – The limit remains the same as 2017 at $12,500 with a $3,000 catch-up for those age 50 and up.

For more information about the IRA Contribution limits, please contact us @ 800.472.0646.

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Apr 23

Retirement And Educational Savings Tax Planning Tips To Lower Taxes In 2017

Here’s another article written by Adam Bergman for Forbes.com

Now that the tax filing deadline has passed for the 2016 tax year, this is a perfect time to start thinking about some simple ways to boost retirement savings and at the same time lower overall tax liability for 2017.

Start Thinking IRA: For 2017, the maximum IRA contribution is $5,500, or $6,500 if you are over the age of fifty. Contributions can generally be made in pre-tax, after-tax, or Roth.  A pre-tax IRA, also known as a traditional IRA, is one of the more popular ways to save for retirement that also offers tax advantages. Contributions made to a traditional IRA may be fully or partially deductible, depending on your circumstances, and, generally, amounts in a traditional IRA (including earnings and gains) are not taxed until distributed, which is not required until one reaches the age of 70 1/2.

Retirement And Educational Savings Tax Planning Tips To Lower Taxes In 2017An after-tax IRA, also known as a non-deductible IRA, is a traditional IRA that contains nondeductible contributions. Nondeductible contributions to traditional IRAs often occur when one makes too much to make a deductible contribution, or is limited because of employer 401(k) plan contributions. When one takes a distribution from an after-tax IRA, the portion of the distribution coming from nondeductible contributions is tax-free, although, any income and earnings generated from that after-tax contribution would be subject to tax, and a 10% early distribution penalty if the individual is under the age of 59 1/2.

A Roth IRA is an improved version of the after-tax nondeductible IRA.  Although one does not benefit from a tax deduction for contributions, all of the qualified distributions, including earnings, come out tax-free. To contribute to a Roth IRA, ones modified adjusted gross income must fall below the annual limits for your filing status (which is $196,000 if filing jointly for 2017). One can withdraw contributions any time, but must be 59 1/2 years old and you must have had a Roth IRA open for at least five tax years before one can withdraw income and gains without tax or penalty.

Business Owners Rejoice:  Owning a business in 2017 can have some significant retirement tax benefits, if one is aware of them. The scope of the benefits is somewhat dependent on whether the business has full-time employees other than the owners.  For example, a sole proprietor or a business entity with no full-time employees, may be eligible to contribute up to $54,000 ($60,000 if the participant is over the age of fifty), to a solo 401(k) plan in pre-tax, after-tax or Roth.  Whereas, if the business has non-owner full-time employees, the business owner’s total contribution may be limited due to the cost of offering maximum employer profit sharing contributions to all employees.  Nevertheless, business owners should consult with their tax advisor to examine how establishing an employer retirement plan, such as a 401(k) plan, SEP or SIMPLE IRA for their business could potentially help their retirement savings, as well as reduce their annual tax liability.

Get to Know the 529 Plan.  A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code. Nearly every state now has at least one 529 plan available, but the plan characteristics may differ by state.   529 plans are usually categorized as either prepaid or savings plans. In general, the tax advantages of establishing and funding a 529 plan is that earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of the designated beneficiary, such as tuition, fees, books, as well as room and board. Contributions to a 529 plan, however, are not deductible. One may make a contribution of $14,000 a year or less to a 529 plan qualifies for the annual federal gift tax exclusion. Under special rules unique to 529 plans, one can gift a lump sum of up to $70,000 ($140,000 for joint gifts) and avoid federal gift tax, provided one makes an election to spread the gift evenly over five years Thus, establishing and funding a 529 plan may will not offer you an immediate tax deduction, but it will allow you to help your children afford college by having the contributions and earnings grow without tax over time, thereby, potentially allowing one to spend their retirement savings on other expenses.

HSA Triple Tax Benefit: IRC Section 223 allows individuals who are covered by a compatible health plan, often referred to as a High Deductible Health Plan (HDHP), to set aside funds on a tax-free basis up to the contribution limit to pay for certain out-of-pocket medical expenses. Health Savings Accounts have a triple tax benefit—funds go into the account tax-free, funds grow tax-free and remain completely tax-free when used for eligible medical expenses.  The IRS imposes certain requirements in order to be eligible to contribute to an HSA, such as one cannot be covered by Medicare.  The maximum 2017 contribution is $6750 for families, with a $1000 catch-up for individuals over the age of fifty-five.

Planning and saving for retirement does not have to be painful.  Understanding the rules and employing a consistent approach can help increase retirement savings while simultaneously reducing ones tax liability. However, a few simple retirement planning moves can help make the difference when April 17, 2018 rolls around.

For more information, please contact an IRA Expert @ 800.472.0646.

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Mar 30

Do You Have to File a Form with the IRS if You Received Distributions from Your Roth IRA?

Yes. In general, File Form 8606 if you received distributions from a Roth IRA.
Use Form 8606, Nondeductible IRAs, to report:

Do You Have to File a Form with the IRS if You Received Distributions from Your Roth IRA?

  • Nondeductible contributions you made to traditional IRAs,
  • Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs,
  • Distributions from Roth IRAs, and
  • Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.

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

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Jan 20

Understanding Your Options When Inheriting An IRA From A Non-Spouse

This article, written by our own Adam Bergman, appeared on Forbes.com

Unfortunately, the Internal Revenue Service (“IRS”) does not allow you to keep retirement funds in your account indefinitely. The required minimum distribution rules (“RMD”) were created in order to guarantee the flow of IRA funds into the federal income tax system as well as to encourage IRA owners to use their retirement funds during their retirement.

One generally has to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when reaching the age 70½ or as the beneficiary recipient of an inherited IRA. Of interest, Roth IRAs do not require withdrawals until after the death of the owner.

There are a number of distribution options available to a designated IRA beneficiary, generally dependent on whether the deceased IRA owner’s sole primary beneficiary is a spouse, and whether the deceased IRA owner has reach 70 1/2, the age for RMDs. Remember, a living IRA owner is not required to take an RMD until the IRA owner reaches the age of 70 1/2.

If an IRA holders dies and designates a non-spouse, such as a parent, child, sibling, friend, etc. as the primary beneficiary of his or her IRA, the non-spouse beneficiary will typically only have two options for taking RMDs with respect to the inherited IRA: (i) the life expectancy rule and (ii) the five-year rule.

Understanding Your Options When Inheriting An IRA From A Non-SpouseThe IRS allows a non-spouse beneficiary to use the life expectancy rules to calculate the IRA required distributions after the deceased IRA holder’s death. The IRA distributions must begin to be taken no later than December 31 of the year after the death of the deceased IRA holder’s death. There are no additional opportunities for delaying IRA distributions for non-spouse beneficiaries. If distributions are made under the life expectancy rule to a designated beneficiary non-spouse, the applicable distribution period for the calendar year immediately after the year of the IRA owner’s death is the beneficiary’s remaining life expectancy as of his or her birthday during that year and the applicable period is reduced by one for each subsequent distribution calendar year. Unlike in the case of a spouse beneficiary, which is required to use the life expectancy of the deceased IRA owner for purposes of calculating the annual RMD amount, a non-spouse beneficiary is required to use his or her life expectancy when calculating the annual required distribution amounts. For example, if Jane is designated as sole beneficiary of an IRA of her mother, who died during 2015, her first distribution calendar year is 2016. If Jane turned 60 years old during that year, the applicable distribution period would be based on the life expectancy of a 60-year-old. Conversely, the non-spouse beneficiary has the option to select a five-year distribution rule, which would required the non-spouse beneficiary to take the entire amount of the inherited IRA as a distribution over a five year period. Of note, a non-spouse IRA beneficiary does not have the option to convert the traditional inherited IRA to a Roth IRA.

The IRA custodian (the financial institution) is required to submit reports to the IRS and to the IRA owner regarding RMDs. If an RMD is required to be taken from an IRA for a calendar year and the IRA owner is alive at the beginning of the year, the IRA custodian that held the IRA as of December 31 of the prior year must provide a statement to the IRA owner to report the due date of the RMD and, in most cases, the amount that is due. The IRA custodian is required to send this report to the IRA owner by January 31 of the year for which the RMD is required.

The RMD rules and options for a non-spouse beneficiary can bring to bear some financial and tax implications.  Therefore, it is important that one consults a tax professional or financial advisor for further guidance.

For more information about options when inheriting an IRA, please contact an IRA Expert @ 800.472.0646.

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Oct 10

Can I Rollover a SIMPLE IRA into a Self Directed IRA LLC?

Yes, a distribution from a Simplified Incentive Match Plan for Employees, or SIMPLE IRA, to the individual for whose benefit the account or annuity is maintained is not taxable to the recipient if reinvested within 60 days in another IRA (other than an endowment contract) for the benefit of the same individual.

Can I Rollover a SIMPLE IRA into a Self Directed IRA LLC?A Self-Directed IRA LLC will allow you to make investments without the consent of a custodian.  By gaining checkbook control over your retirement funds, you may invest in (almost) anything you like.  These investments include, but are not limited to, real estate, tax liens, precious metals, certain coins and businesses.  If you are a small business owner/employee, a Self-Directed SIMPLE IRA is another option you may consider when planning for retirement.

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

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May 17

Selecting a Great IRA

Here’s another great article from usnews.com about selecting an IRA:

Outside of saving for retirement through employer plans, which include pensions, 401(k)s, 403(b)s and 457 plans, individual retirement accounts are your most effective tax-advantaged savings tool. These accounts were created in 1974, and designed to allow individuals who do not have access to pensions to save for retirement.

IRAs started out simple. You could contribute up to 15 percent of your pay (or a maximum of $1,500 per year), receive a deduction on your tax return and allow the account to grow without incurring annual taxes. Then, when you pulled money out of the account in the future, you would pay ordinary income tax on the withdrawals.

But a lot has changed with IRAs. Since the 1970s, the IRA has evolved in complexity, and deciding which version is the best fit for your retirement savings plan has become more complex. Here’s a guide to the different IRAs, and how to maximize their benefits.

Traditional IRA. As the name implies, the traditional IRA is the most similar to the original design. Depending on your income, you may qualify for a tax deduction. For 2016, if you are covered under a workplace retirement plan, the deduction phases out for couples whose modified adjusted gross income is between $98,000 and $118,000 ($61,000 to $71,000 for individuals). If you are not covered, but your spouse is, the income limit increases to $184,000 to $194,000 in 2016.

Planning opportunity. IRAs can be used by people who don’t have a workplace retirement account or individuals who have maxed out all their other tax-advantaged savings opportunities. Traditional IRAs can also be used by individuals hoping to fund Roth IRAs, even though their income exceeds the Roth contribution limits, via a Roth conversion strategy.

Limits. The current funding limit for a traditional IRA is $5,500 for those under 50 and $6,500 for people age 50 and over.

Rollover IRA. The average baby boomer held nearly 12 jobs by age 50, according to the Bureau of Labor Statistics. This means you are likely to participate in quite a few retirement accounts at various employers. A rollover IRA is a traditional IRA that is used to consolidate old retirement accounts.

Planning opportunity. Not all retirement plans are created equally. You may have left assets in an old employer plan that has high fees, expensive funds and limited investment options. Once you have a separation in service you can take those assets and invest them with a low cost IRA provider. It also makes your financial life easier to consolidate accounts.

Inherited IRA. If you are the beneficiary of an IRA and not the spouse of the deceased person, you will need to open an inherited IRA. This allows the assets of the person who died to pass to you while maintaining their tax-advantaged status. Inherited IRAs operate differently than regular IRAs, and the passing of the assets usually triggers (or continues) the processing of required minimum distributions.

Planning opportunity. These IRAs provide the opportunity to stretch out the benefit of tax deferred growth since required minimum distributions can now be based upon the life expectancy of the beneficiary rather than that of the deceased. It may be beneficial to seek professional guidance from either a financial advisor or accountant to make sure the required distributions are correctly processed moving forward.

Roth IRA. The Roth IRA came about in 1997. Rather than getting a tax deduction on your current return, contributions made to a Roth IRA go in after-tax. But the account grows tax-deferred, just like a traditional IRA. And, assuming certain requirements are met – you must be age 59 1/2 and have an account that is at least 5 years old – the money can be withdrawn tax free.

Planning opportunity. Roth IRAs are a tremendous saving opportunity for younger individuals and individuals in low tax brackets. If you feel you will be in a higher tax bracket in retirement than you are now, growing Roth assets is likely to be a smart strategy. Roth IRAs are not subject to required minimum distributions, which can provide for additional tax savings and estate planning opportunities later in life.

Limits. The current funding limits for a Roth IRA are $5,500 for those under 50 and $6,500 for those 50 and over. The ability to contribute to Roth IRAs phases out for single tax filers with a modified adjusted gross income of $117,000 to $132,000 and married filers with between $184,000 and $194,000 in 2016.

Honorable Mentions:

SEP IRA. A simplified employee pension IRA is an employer-sponsored plan that can be set up for businesses of any size, including sole-proprietors, partnerships or companies with a number of employees. All contributions to the plan are made by the employer. These plans usually make the most sense for self-employed business owners.

SIMPLE IRA. A savings incentive match plan for employees is an employer-sponsored retirement plan that allows both employees and employers to contribute on the employee’s behalf. This plan is most suitable for small businesses with fewer than 100 employees. The current limit an employee may contribute through salary deferral contributions is $12,500 for those under 50 years old and $15,500 for those over 50.

Coverdell education savings account. This is a tax-advantaged plan that can be established for individuals under age 18 that allows parents to save for qualified primary and secondary education expenses. The maximum amount that can be contributed to an ESA is $2,000 per year. You can’t deduct contributions to a Coverdell ESA on you tax return, but the money grows without taxation until you withdraw it and is tax-free when used to pay for qualifying education costs. There are two benefits that Coverdell ESAs offer over 529 college savings plans: ESAs can be used for private kindergarten through grade 12 education, and they have less restricted investment opportunities.

Retirement savers have many types of IRAs to choose from. Understanding the benefits each type of IRA provides allows you to select the retirement account that will help you to best reach your financial goals.

If you have any questions or are looking to open an IRA, please contact an IRA Expert at the IRA Financial Group @ 800.472.0646.

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Feb 22

Cashing Out a SIMPLE IRA

Here’s a short article from fool.com talking about the rules for cashing out a SIMPLE IRA:

A SIMPLE IRA is a type of retirement plan that is popular among small businesses and the self-employed. Like most other retirement accounts, there are special rules governing when you can withdraw the money. Here’s what you need to know.

What is a SIMPLE IRA?
A SIMPLE IRA plan is available to any small business with 100 or fewer employees, and as the name implies, is relatively easy to establish and maintain. Employees may choose to contribute to their accounts, and the employer has two options. They can either:

  • Match employee contributions up to 3% of compensation, or
  • Contribute 2% of compensation for every eligible employee.

Employees are always 100% vested in their accounts, and their contributions are limited to $12,500 in 2016, with an additional $3,000 “catch up” contribution allowed for account holders over 50. Just like most other tax-deferred retirement accounts, employees are required to begin taking required minimum distributions at age 70 1/2.

If you’d like more information about SIMPLE IRAs, check out this in-depth look at this type of account.

Cashing Out a SIMPLE IRAWhen are you allowed to withdraw from a SIMPLE IRA?
Technically, you can withdraw the funds in your SIMPLE IRA whenever you want to. However, if you make an unqualified withdrawal, you’ll face a 10% early withdrawal penalty from the IRS. If withdrawals are made within the first two years of participation in the SIMPLE IRA, the penalty increases to 25%.

Qualified reasons for withdrawing from a SIMPLE IRA include the following:

  • You’re over 59 1/2 years old. This is considered “retirement age” for the purpose of most types of retirement accounts.
  • You die or become totally and permanently disabled.
  • The withdrawal is used to pay qualifying higher-education expenses.
  • You agree to take withdrawals in a series of “substantially equal payments” over your remaining life expectancy.
  • The withdrawal is $10,000 or less and is used toward a first-time home purchase for you or a relative.
  • The withdrawal is used to pay an IRS levy.
  • The withdrawal is used to pay large unreimbursed medical expenses, or to pay health insurance premiums while you’re unemployed.
  • You’re a qualified military reservist called to active duty.

It’s also important to mention that any money you withdraw from your SIMPLE IRA, regardless of whether it’s a qualified withdrawal or not, will be included in your taxable income for the year. So before you cash out your entire account, consider that doing so may put you into a higher tax bracket.

If you have any questions, you can contact an IRA Expert at the IRA Financial Group @ 800.472.0646.

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Feb 16

SIMPLE IRAs and Early Distributions

All of the special IRA rules for early distributions apply to SIMPLE IRAs, but there is one additional rule. If you are a participant in a SIMPLE IRA and receive a distribution within 2 years of the date you began contributing to it, the early distribution tax increases from 10% to 25%. At the end of 2 years, it falls back to 10%.

SIMPLE IRAs and Early Distributions

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

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Oct 30

2016 IRA Contribution Limits

2016 IRA contribution limits still offer great retirement and tax benefits

Starting on January 1, 2016 the Internal Revenue Services (“IRS”) announced that individuals seeking to making Traditional or Roth IRA contributions will be limited by the same annual contribution numbers as in 2015.

In 2016, Traditional and Roth IRA contribution limit will stay the same at $5,500 in 2016. The age 50 catch up limit is fixed by law at $1,000.

In the case of SIMPLE IRA plans have a lower limit than 401k plans. It will also stay the same at $12,500 in 2016. For those over the age 50 or over, the catch-up contribution limit will also stay the same at $3,000.

According to Adam Bergman, a partner with the IRA Financial Group, “although the 2016 IRA annual contribution limitations have not increased since 2015, there is still great opportunity to make tax-deferred or Roth contributions which can be the difference between retiring with wealth and having to work the rest of your life. “

2016 IRA Contribution LimitsFor those interested in making Roth IRA contributions, the IRS has increased the income limit for contributing the maximum to a Roth IRA by$1,000 in 2016 to $117,000 for singles and $184,000 for married filing jointly. “One is not able to contribute anything directly to a Roth IRA when your income goes above $132,000 for singles and $194,000 for married filing jointly, both up by $1,000 in 2016. However, you can still do a backdoor Roth IRA.” Stated Mr. Bergman.

IRA Financial Group’s Self-directed IRA LLC offers retirement investors the ability to make traditional as well as alternative asset investments, such as real estate, from a local bank account without any transaction fees. “With IRA Financial Group self-directed retirement plans, making an investment is as easy as writing a check.” Stated Mr. Bergman.

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 provider of “Checkbook Control” Self Directed IRA and Solo 401k Plans. 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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Jun 23

Transferring a SIMPLE IRA to a Self Directed IRA

Individuals may generally transfer IRA or rollover eligible qualified retirement plan assets into a self-directed IRA LLC structure. Individuals may also roll over after-tax retirement funds to a Self-Directed SIMPLE IRA.

What is the most Common Way to Fund a Self-Directed SIMPLE IRA ?

Transfers and rollovers are types of transactions that allow movements of assets between like IRAs – Traditional IRA to Traditional IRA, including Savings incentive match plan for employees of small employers (SIMPLE). A SIMPLE IRA transfer is the most common method of funding a Self-Directed SIMPLE IRA LLC.

Note – SIMPLE IRA assets may be rolled over to a Self-Directed SIMPLE IRA anytime, however, SIMPLE IRA assets may be rolled over to a 401(k) qualified retirement plan, 403(b) plan, governmental 457(b) plans or a Traditional IRA only after a two (2) year waiting period is met. Though, a 401(k) qualified retirement plan, 403(b) plan, or governmental 457(b) plan may not be rolled into a SIMPLE IRA. Also, a Roth IRA cannot be rolled into a SIMPLE IRA.

Rollover Chart

Click the image below to view the Rollover Chart.

IRA Rollover Chart

SIMPLE IRA Transfers to a Self-Directed IRA

A SIMPLE IRA-to SIMPLE IRA transfer is one of the most common methods of moving assets from a SIMPLE IRA to Self-Directed SIMPLE IRA LLC. A transfer usually occurs between two separate financial organizations, but a transfer may also occur between SIMPLE IRAs held at the same organization. If a SIMPLE IRA transfer is handled correctly the transfer is neither taxable nor reportable to the IRS. With a SIMPLE IRA transfer, the SIMPLE IRA holder directs the transfer, but does not actually receive the IRA assets. Instead, the transaction in completed by the distributing and receiving financial institutions. In sum, in order for the SIMPLE IRA transfer to be tax-free and penalty-free, the IRA holder must not receive the SIMPLE IRA funds in a transfer. Rather, the check must be made payable to the new IRA custodian. Also, there is no reporting or withholding to the IRS on an IRA transfer.

The retirement tax professionals at the IRA Financial Group will assist you fund your Self-Directed SIMPLE IRA LLC by transferring your current SIMPLE IRA funds to your new Self-Directed SIMPLE IRA structure tax-free and penalty-free.

How the SIMPLE IRA to Self-Directed IRA Transfer Works?

Your assigned retirement tax professional will work with you to establish a new Self-Directed SIMPLE IRA account at a new FDIC and IRS approved IRA custodian. The new custodian will then, with your consent, request the transfer of your SIMPLE IRA assets from your existing IRA custodian in a tax-free and penalty-free IRA transfer. Once the IRA funds are either transferred by wire or check tax-free to the new SIMPLE IRA custodian, the new custodian will be able to invest the SIMPLE IRA assets into the new SIMPLE IRA LLC “checkbook control” structure. Once the funds have been transferred to the new SIMPLE IRA LLC, you, as manager of the SIMPLE IRA LLC, you would have “checkbook control” over your retirement funds so you can make traditional as well as non-traditional investments tax-free and penalty-free.

60-Day Rollover Rule

An individual generally has sixty (60) days from receipt of the eligible rollover distribution from a SIMPLE IRA account to roll the funds into a Self-Directed SIMPLE IRA LLC structure. The 60-day period starts the day after the individual receives the distribution. Usually, no exceptions apply to the 60-day time period. However, in cases where the 60-day period expires on a Saturday, Sunday, or legal holiday, the individual may execute the rollover on the following business day.

An individual receiving an eligible rollover distribution may rollover the entire amount received or any portion of the amount received. The amount of the eligible rollover distribution that is not rolled over to an IRA is generally included in the individual’s gross income and could be subject to a 10% early distribution penalty if the individual is under the age of 591/2.

How the 60-Day Rollover Works with a Self-Directed SIMPLE IRA

The retirement tax professionals at the IRA Financial Group will assist you in rolling over your 60-day eligible rollover distribution to a new FDIC and IRS approved IRA custodian. Once the 60-day eligible rollover distribution has been deposited with the new IRA custodian within the 60-day period, the new custodian will be able to invest the SIMPLE IRA assets into the new IRA LLC “checkbook control” structure. Once the SIMPLE IRA funds have been transferred to the new IRA LLC, you, as manager of the SIMPLE IRA LLC, you would have “checkbook control” over your retirement funds so you can make traditional as well as non-traditional investments tax-free and penalty-free.

Self-Directed IRA Transfer Experts

The retirement tax professionals at the IRA Financial Group will assist you in transferring your SIMPLE IRA tax-free and penalty-free to a “checkbook control” self-directed SIMPLE IRA LLC solution. Each client of the IRA Financial Group will work directly with an assigned retirement tax professional to establish the Self-Directed SIMPLE IRA LLC solution and make sure that the self-directed IRA transaction is structured in the most tax efficient manner and is not in violation of any IRS rules.

To learn more about the Self-Directed IRA transfer or direct or indirect rollover rules, please contact a tax professional at 800-472-0646.

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