IRA LLC & Trust Basics

Beneficiary Mistakes — Self-Directed 401(k) or IRA (Part 2)

In the previous post, we introduced three potential beneficiary designation mistakes.  In this post, we will point out a few more. Don’t Name Your Kid! This is not meant as harsh as it sounds.  As with other considerations, this relates to the issue of age.  There are WAAAAY too many people who identify their minor children as either a primary…read more →

2015 New IRA Rollover Rules — Married Couples

As many of you may be familiar, there is a new IRS rule effective no later than the 2015 year which is going to close the loophole on people executing a rollover for each of multiple IRAs they may own.  In short,  the soon-to-be old rule permitted an IRA account owner to execute one IRA rollover, per IRA, per 12 month period.  As…read more →

Required Minimum Distributions from a Self-Directed IRA

I don’t know why, but there is a segment of the self-directed IRA (non-Roth) population that has an incorrect belief on self-directed IRAs and Required Minimum Distributions (RMDs).  What is this incorrect belief or assumption? Almost like a Ripley’s “Believe it or Not” show, the IRA account owner’s belief they do not need to take out an RMD if their IRA is illiquid….does…read more →

Setting Up a Self-Directed IRA with an IRA Custodian

The question that most people are interested in asking, but they rarely ask.  What steps are typically followed with the IRA custodian when establishing your self-directed IRA LLC?  Why? Probably because they place significant trust in the self-directed company assisting with the establishment of the self-directed IRA LLC.  But, since a portion of that process involves the IRA account owner’s involvement, you…read more →

Common Sense to a New IRS Rule for Single Distributions

Well, finally, the application of common sense to a new IRS rule for single distributions from a retirement plan.  In fact, the common person would probably not understand why this rule wasn’t already in place, because it just makes sense.  And considering more and more retirement plans have options for participants to make pre-tax, Roth and “after-tax” contributions, this ruling, well, makes sense. In a nutshell,…read more →

Application of One-Per-Year Limit on IRA Rollovers

Well, you didn’t necessarily ask for it, but I am going to give it to you anyways.  If you are an IRA account owner who, let’s say, likes to execute IRA rollovers, you want to pay particular attention to this. Now, mind you, I always encourage folks to execute direct transfers between IRS-approved custodians.  I understand why a certain element…read more →

Inherited IRA Mistakes

This post is not related to an IRA that identifies one spouse as a beneficiary of their spouses IRA.  This is merely intended for any person who inherits an IRA from another individual and they are a non-spousal beneficiary. IRA rules for non-spousal beneficiaries can be extremely complicated, even for the individuals who are trying to do everything correctly.  And, while…read more →

IRA Transfers and Rollovers

At this time of year, many people may consider executing IRA transfers and rollovers.  It is always good to provide a brief review of this process…and we will keep it brief. There are two primary means by which people move IRA funds to another IRA, whether it is a self-directed IRA or not.  That is either through a direct Trustee-to-Trustee…read more →

A Little Peek at New IRS IRA Reporting Requirements

Speak of the devil, while I just did a blog on new IRA reporting requirements for 2015, the IRS has come out with a “DRAFT” copy of a newly-proposed Form 5498.  The primary (if not sole) purpose of this draft form, and what will be a final revised Form 5498, is to ascertain and report the FMV (Fair Market Valuation)…read more →

New Reporting Requirements for IRAs

Any IRA account owner, but especially a self-directed IRA account owner, should take particular notice of a new IRS reporting requirement that will affect IRAs in 2015.  This new reporting requirement was originally to be effective in 2014; however, the IRS delayed the implementation of this requirement until 2015 to adequately provide time to IRA custodians to prepare for the…read more →