Self-Directed Custodians

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 →

IRA and 401(k) Rollovers

Reminders on IRA and 401(k) rollovers are always good to review and hearing directly from the IRS on this process is never a bad thing either.  You see, while rollovers are not difficult to administer and process, it is always amazing how many people inadvertently make mistakes in this process…and, believe it or not, so do financial service companies executing rollovers on your behalf. IRA…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 →

Self-Directing Your IRA — How Long Will it Take?

Realistically, how long does it take? You have made the phone calls and done your research.  You may have also spoken to some self-directed companies who give the impression or outright tell you that your account can be established and funded in a matter of days.  Is this realistic? Before you answer …think about some aspects of establishing a self-directed…read more →

Operating Agreement for Self-Directed IRA LLCs

I occasionally receive a question from a client on why is an operating agreement for self-directed IRA LLCs important. The genesis of the question usually rotates around when an IRA account owner is establishing the bank account for their IRA LLC, the bank will require that the individual provide the Federal TIN (Taxpayer Identification Number) and the approved articles for the…read more →

IRA LLC Valuations

Recently, I wrote a post related to IRA LLC valuations and the new requirements that custodians must follow effective in 2015.  These new IRA LLC valuations will place greater responsibility on the IRA custodian for a more accurate reporting of “hard to value assets.”  While the final requirements have not been communicated to custodians, there will be change to an account manager…read more →

401(k) Investment Options

There are so many 401(k) investment options.  Yes, you heard that correctly, but you probably don’t believe me.  You may be in your traditional plan where your 401(k) investment options are going to be limited to the normal world of stocks, bonds and mutual funds.   But, is that the only investment options the IRS permits your 401(k) to have?  Are…read more →

Unrelated Debt Financed Income (UDFI)

Many people start going down the path of creating a self-directed IRA and have never heard of the term Unrelated Debt Financed Income (UDFI).  And, when they visited with the company that established their self-directed IRA, the concept of Unrelated Debt Financed Income may not have even come up.  I mean, if an IRA is not planning on financially leveraging an…read more →