Self-Directed Retirement Account Planning
The Law Office of Ken Childs has extensive knowledge and experience in the area of self-directed retirement account planning. This includes legal guidance and structuring that allows your retirement account (Traditional IRA, Roth IRA, etc.) to invest in non-traditional investments such as raw land, rental properties, precious metals, non-publically held LLCs, C-Corps, and countless other investments.
In fact, the IRS provides a very short list of what your retirement IRA CANNOT invest in, this includes Collectibles, Life Insurance, Shares of an S-Corporation, and any transaction that would cause a Prohibited Transaction. See IRC §408 & IRC §4975. Essentially anything outside of that is fair game. If you want more control over the types of investments your retirement account makes, then self-directed retirement accounts are for you.
In addition to Traditional IRAs and Roth IRAs, you can also self-direct SIMPLE IRAs, SEP IRAs, and Solo 401(k) Plans as well as other types of plans including Health Savings Accounts (HSAs) and Coverdell Education Accounts.
Because of the sometimes complicated laws regarding the above-mentioned Prohibited Transactions, consulting an attorney experienced in this area of law is essential. Although the freedom to invest with your retirement account is great, you’ll want to be sure you don’t do anything that would compromise the tax advantages of your retirement account or result in unnecessary penalties.
The process for moving your retirement account to a self-directed account is simple. The law requires you to move your account to a retirement account custodian that allows for real self-directed investments. The custodian will sign the real estate purchase agreements or other investment agreements YOU provide to them for the investments YOU choose to purchase. Payments for expenses related to those investments will also be done by you directing the custodian to make those payments. We can guide you through the process.
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