American IRA Discusses the Self-Directed Simple IRA Rules

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Combining the tax advantages and flexibility of a Self-Directed IRA intrigues many investors. But for business owners, is a Self-Directed SIMPLE IRA the best way to go? A recent post at American IRA explored this subject.

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American IRA CEO, Jim Hitt

A Self-Directed SIMPLE IRA can be a great way to install a retirement plan at their small business that’s robust enough to give them high contribution limits and flexible enough to handle a wide variety of investment types

Holding a Self-Directed IRA allows investors to plan for retirement with a great degree of freedom and flexibility. But what kind of account might be best for investors who run their own businesses? According to a recent post at American IRA, the Self-Directed SIMPLE IRA is a “common and popular variant of the IRA designed for small businesses with 100 or fewer employees who do not want to go through the trouble of setting up and administering a full-fledged ERISA-qualified 401(k) plan.”

The Self-Directed SIMPLE IRA allows contributions from both employees and employers. Employees would be able to contribute up to $13,000 for 2019, or up to 100 percent of compensation. Additionally, people at age 50 or older can contribute an additional $3,000 per year to play “catch-up.”

Why a Self-Directed SIMPLE IRA? According to the post, these “plans allow employees more flexibility in when they can take distributions.” For example, a 401(k) plan allows for distributions upon reaching age 59 ½, disability, and termination of service to the company. However, SIMPLE IRAs are eligible for distributions at any time. This comes with the usual caveat that distributions are taxable and subject to a penalty of at least 10 percent prior to retirement age of 59 ½.

“People like business owners have to think about their employees,” said Jim Hitt, CEO of American IRA, “but they also have to think about themselves. A Self-Directed SIMPLE IRA can be a great way to install a retirement plan at their small business that’s robust enough to give them high contribution limits and flexible enough to handle a wide variety of investment types.”

Setting up a Self-Directed Simple IRA requires a custodian or third-party administrator to set up and hold the assets and record the transactions. For more information, visit American IRA at 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, NC."

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