American IRA Explains Tax Considerations for Self-Directed IRA Investors
Tax considerations for Self-Directed IRA investors can be highly beneficial--but they can also be highly complicated. A recent post at the American IRA blog helped shed light on the subject.
CHARLOTTE, N.C., Jan. 30, 2019 /PRNewswire-PRWeb/ -- Investing in a Self-Directed IRA is a way for many investors to realize a wide range of benefits for their retirement strategy. It is also a way for them to enjoy a wider range of investment classes than they would normally get to choose from. However, the benefits of using a Self-Directed IRA sometimes come with the cost of tax considerations. A recent post at American IRA addressed these considerations to help simplify them and explain how they work.
In the first section, the post explored Traditional vs. Self-Directed Roth IRAs. Noting that a Roth IRA allows after-tax dollars to be contributed into an account, which in turn means that the growth in the account is then tax-free, the post explained how these tax considerations can often work to the investor's benefit. There are also ways to save money now, using pre-tax money to put into an IRA, which is then taxed on the back end. For savvy retirement investors, these strategies can mean the difference of a wide margin of money by the time retirement comes around.
The article further went to explain estate tax considerations for a Self-Directed IRA. A Self-Directed Roth IRA, for example, could get money out of an estate (which would be taxable upon the death of the investor or the death of a surviving spouse) and into a separate account. This can help those with large sums of money to better plan their estates and exercise more control over their money.
"People understand that a Self-Directed IRA is a great way to try new investments," said Jim Hitt, CEO of American IRA. "With this recent post, we wanted to introduce the various tax considerations that could not only help people understand how these accounts work, but why they can be so beneficial when used in the right way."
The post went on to address a range of issues, including using leverage with a Self-Directed IRA, and 401(K) exemptions from tax on unrelated debt-financed income. These issues can grow complex, which is why many people choose to work with a reputable Self-Directed IRA administration firm.
For more information, visit http://www.AmericanIRA.com or call 866-7500-IRA.
About:
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, N.C.
SOURCE American IRA, LLC
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