Self-Directed IRA & 401k Blog
Welcome to New Direction IRA’s Self Directed IRA Blog. We make a good effort to keep valuable and relevant blog articles coming on a regular basis. Be sure to subscribe to our RSS feed and participate in our blogs. Please be sure to share your thoughts and responses to our words on Self Directed IRA investing.
What CFPs need to know before their clients start a self directed IRA
Self-directed IRAs allow control of one’s retirement investments. Clients can benefit from self-directed IRAs by reducing their taxes while enhancing their asset protection and estate planning. With this insight, your clients can unlock their own investment expertise, making tax-free or tax-deferred investments in assets they may know and understand personally....
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Step Up In Basis of Real Estate Assets
Question: If I die before the sale of my investment property, will my heir be able to benefit from step-up in basis and pay fewer taxes? Step up in basis at death is not available for a Traditional IRA’s assets, including any real estate it owns. Normally, if you die...
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1031 Exchanges in an IRA
Question: Can a real estate IRA benefit from a 1031 exchange? IRAs don’t normally have any need for a 1031 exchange although they are allowed to do so if needed to decrease taxes. Money in an IRA can generally move tax free from one asset class to another, so a...
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Does America Save?: How an HSA can help you pay bills, invest and save money
It’s difficult sometimes to make ends meet while putting away enough to reach our retirement goals, especially with an uncertain market and ever-changing legislation. The government recognizes this. And so we’re fortunate, at least, that our current tax laws provide us with a great way to save and reduce our taxes...
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New Direction CEO Bill Humphrey teaches self-directed IRAs to financial professionals via webinar
New Direction IRA CEO Bill Humphrey taught dozens of financial professionals about the opportunities and fundamentals of self-directed IRAs via webinar last month. The webinar, held February 20th, was sponsored by the National Association of Personal Finance Advisors (NAPFA) as part of their educational programs directed towards members and non-members...
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Liquidity and Expenses of Real Estate IRAs
Question: How do I manage expenses and cash flow in an IRA, particularly when I reach retirement age and have to take Required Minimum Distributions (RMDs)? Planning for investment cash flow needs is critical for any investment strategy, particularly illiquid assets like real estate. Annual contribution limits vary from over...
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Real Estate IRA Asset Valuations
Question: Do I have to get my IRA-owned real estate appraised every year and how much will that cost? If you own real estate property, you have to submit a valuation to your administrator every year to ensure proper tax reporting by your IRA administrator. A fair market valuation is...
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Custodial Fees in Real Estate IRAs
Question: Is it expensive to have a real estate IRA? Won’t I have to pay a ton of custodial fees to manage a real estate IRA? It’s not expensive to invest your IRA in real estate. At New Direction, we have a structured fee schedule so you’ll know exactly what...
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Personal Use of IRA Property
Question: Is it true I can’t live in or vacation in my IRA-owned real estate? Yes, that is true. Think of it this way: Your IRA is taking advantage of IRS rules that allow it to grow tax-free or tax-deferred. The assets that you purchase with your IRA are not...
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Depreciation of IRA Real Estate Assets
Question: If I purchase property with non-IRA funds, I can write off depreciation but I can’t if I buy it with my IRA. Why should I give up what appears to be such a significant tax advantage? This is probably the most common question we receive. Rather than giving up...
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