February 2009

Precious Metals in your IRA

From cheaply- produced late night TV commercials to your friendly neighborhood financial advisor, it's easy to think we're stuck in 1850 California with all the cries of "GOLD!" Luckily, if you're interested in precious metals, you don't need to climb the dusty hills with a pick and pan. You can easily invest IRA or 401(k) funds in gold, silver, platinum and palladium.

Financial experts provide a plethora of reasons for investing in precious metals. Among these reasons are diversification of your portfolio and a potential hedge against inflation. Some investors think of gold simply as a retirement investment, and will try to buy low and sell high. Others consider gold as a currency which will hold its value better than dollars, yen, or euros.

As always, we do not endorse any investment nor provide any investment advice. However, if you decide precious metals are a good idea for your retirement fund, we make it easy for you. We offer a reduced annual fee for new and existing clients who want to invest in precious metals. Regardless of the size of investment, the annual fee is .075% of the value of the account on the day of purchase and annually thereafter (with a minimum fee of $55 and a maximum fee of $160).

We have three depository options for your IRA's precious metals, two domestic and one international. First State Depository and Delaware Depository are in the United States and are more traditional safe houses for your IRA's investment metals. The reduced annual fee mentioned above applies to domestic depositories only. Gold Money is located in Jersey, British Channel Islands, with vaults in Zurich and London and has a non-traditional system in place for your IRA's ownership of precious metals.

Call or email us for more details on how you can buy precious metals for your retirement fund or HSA.

Understanding Self-Directed IRA Tax Forms

Happy New Year from Entrust New Direction! Now that the champagne bottles have been recycled, the noise makers trashed, and the resolutions listed, it's time to think about tax forms. Education is our number 1 priority at Entrust New Direction IRA, Inc, and we want to give you some basics on the tax forms used with self-directed retirement plans.

1) 1099-R - This form, filed annually with the IRS, reports IRA and other retirement plan distributions and conversions from traditional to Roth IRAs. We prepare the 1099-R and send it to you and the IRS.

2) 5498 - This tax form, also filed annually with the IRS by Entrust New Direction, details the IRA contributions, roll-over amounts, and the IRA's fair market value. The enclosed statement is a valid substitute 5498 for tax preparation purposes. We prepare the 5498 and file it electronically with the IRS.

3) 990T The 990T, also called Exempt Organization Business Income Tax Return Form, is filed when a self-directed retirement fund earns unrelated business income tax (UBIT). This often occurs when your IRA holds leveraged real estate or owns an operating a business. Having a 990-T prepared is your responsibility. If you need help, see below.

You may prepare the 990-T yourself, or engage an accounting firm which is aware of self-directed retirement accounts and the related tax filings. IRA Tax Services, owned by the same people as Entrust New Direction IRA, specializes in 990-T preparation for those with self-directed retirement plans, including IRAs (both Traditional and Roth), SEP-IRAs, SIMPLE IRAs, 401(k)s and other qualified plans. IRA Tax Services also provides tax document preparation services to individuals and corporations who hold debt-leveraged investments in an IRA. They can be reached 303-604-0736 or info@irataxservices.com.

Webinar Series

New educational webinar series focusing on alternative investments for growing your retirement. Many of your business associates and friends may not know that investments outside of traditional stocks, securities, and mutual funds are available to them. We encourage you to learn, grow, and also share this information with them.

Topics featured this quarter include: Hard Money Lending your IRA, Owning Land in an IRA, Buying Real Estate with your IRA: a Step-by-Step Tutorial, Precious Metals IRAs, and Rescuing your Retirement from the Stock Market.

To register and for a full webinar schedule please see our website: NewDirectionIRA.com.

Entrust New Direction's Client Networking Event

Entrust New Direction's Client Networking Event on the evening of March 2nd from 4:00-7:00 PM will be an evening of good food and enlightening conversation about investment experiences. Bill Humphrey and special guest volunteers will demonstrate a typical IRA transaction but also detail some specific examples of investment success.
During the 2008 Event, many clients told personal stories about their investing history, and everyone went home with more knowledge about self-directed investments. Last spring, attendees heard about short sale real estate, Costa Rican tree farms, foreign real estate, and much more.

We'd love for you to join the Client Networking Event. For more information, please join our mailing list by either sending an email to events@ndira.com or visiting our website.

We Need a Hero - An Investment Hero.

Have you had success with self-directed investing? Have you had a steep learning curve with self-directed investing? Have you learned a thing or two about investing with your IRA/HSA/401(k)? We'd love to hear from you about anything you've invested in - all varieties of real estate, private companies, loans - anything!

We do not provide investment advice, and we are not looking for investment advice - we are looking for investment stories. You may remain anonymous, if you wish, or we can use your direct quotes in articles, press releases and other media material.

To thank you for sharing your story, all story contributors will receive our set of 3 educational CDs on self-directed investing.

News and Notes

Required Mandatory Distributions
The IRS is suspending the Required Mandatory Distributions for IRAs and related retirement accounts in 2009. The change is designed to allow more time for retirees' nest eggs to rebound from a chaotic year in the stock market. This is also good news for self-directed IRA holders, as these funds may continue to grow.

5498 form
Please note that your enclosed statement is the equivalent of your 5498 form. Entrust New Direction has sent this form to the IRS, and the statement / 5498 enclosed is for your records.

Annual Valuation of IRA-Owned Assets

One of our requirements as your administrator is that you submit a fair market valuation of assets owned by your IRA annually. This valuation, as indicated in the enclosure in this Newsletter, is due by February 27th, 2009. In the past there was no fixed format for submitting this information. Our reporting requirements have changed and we are now requiring a signed form for our files to prove that we have received this valuation. The enclosed form and instructions are designed to cover a variety of assets so the method of valuation will vary accordingly.

There are likely to be many questions about the valuation process and have set up a specific email address for answering these questions. Contact us at valuation@ndira.com and we will get back to you in a timely manner. Unfortunately, given the volume of calls it will be very difficult to get back to everyone who calls and therefore we strongly encourage the use of email.

Employee Spotlight - Patrick Hagen

Patrick Hagen

Patrick Hagen is one of those rare individuals who actually enjoys going to work in the morning. "I love working with self-directed retirement plans. I love giving presentations and teaching classes." With a background in banking and finance, Patrick started as a loan officer with a community bank before joining Entrust Florida in 2005. Patrick, his 11-year-old dog Tucker and his wife Jennifer ("woman of my dreams") moved to Colorado in May, 2008, and plan to stay forever. Patrick loves to coach, play and watch baseball and football.

Originally from Eureka, MO, Patrick is a die-hard St. Louis Cardinals fan. But even when the Cards were in the hunt for the pennant, Patrick couldn't stop talking about self-direction, "I think self-directed retirement plans are an essential piece of the investment puzzle. I think anyone with a decent-sized IRA should have some of their funds in alternative investments with a self-directed IRA." Call the office anytime to talk to Patrick about self-directed IRAs, baseball, or what it's like to love your job.

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