End of Year Considerations – Annual Account Statements

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We’ll be putting the finishing touches on 2017 over the next several weeks, which means your end-of-year account statement will soon be available for viewing on your myDirection® portal. This statement will specify the most recent fair market valuation of assets in your account and report it current as of December 31. You can use this value to calculate your 2018 required minimum distribution if you’re age 70½ or above and hold a pre-tax account (Traditional IRA, SEP IRA, etc.) or a non-spouse inherited IRA. Your annual statement will also chronicle any transactions that took place and any fees (further addressed below) that you paid. Clients with multiple self-directed IRAs will have access to a separate statement for each account.

The following are also key matters included with or related to your annual statement:

Paper vs. Online Statements

Last year you may remember that we adopted paperless business practices to further optimize your self-directed investment experience and reduce our environmental impact. As such, unless you specifically opted to continue receiving paper copies, all statements are provided electronically via myDirection®. Paper statements will carry a per-statement fee of $10.00. To verify or update your notification preferences, please log in to your myDirection® portal:

  • Select “Profile” in the upper right-hand corner of the page
  • Select “Update Your Notification Preferences” near the top
  • Select all applicable documents that you would like to receive via hard copy

Fee Information

You’ll see two pages included with your statement: “Annual Administration Fees” and “Transaction Related Fees”. This is not a bill; these pages simply identify the fees that were assessed over the course of the previous year. You may owe annual or processing fees at this time, but they would not be indicated on your annual statement. For information about fees you may owe, please refer to your invoice—a separate document from your annual statement—or contact our office to receive confirmation from one of our client relations specialists.

Rollover Contributions

If you rolled money from a 401(k) or other such plan in 2017, the issuing custodian will produce a Form 1099 to describe the rollover distribution. New Direction IRA will generate a Form 5498 to show the corresponding rollover contribution, but not until after the filing deadline in April. Because IRA holders can make 2017 contributions up until tax day, we wait until after that date to issue Form 5498s. Obviously you’ll need to file your taxes before then, so your annual statement can provide sufficient verification that your rollover distribution was returned to a qualified plan within 60 days and is therefore a non-taxable event.

We hope you and yours have a wonderful 2018! To learn more about your annual statement, end-of-year tax documents, or self-directed IRA investing in general, please don’t hesitate to give us a call.

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