New Direction Trust Company Initiates Education Tools for Qualified Opportunity Zone Funds

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Opportunity zone funds, which may provide tax-advantaged returns through investments in underdeveloped or distressed communities, offer additional tax considerations for those who invest with their IRAs, 401(k)s, or HSAs.

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Today’s investors may be more socially conscious. They may seek viable financial opportunities while supporting important initiatives.

New Direction Trust Company is excited to offer custodial services for IRA investments in Qualified Opportunity Funds (QOFs). Specifically, New Direction Trust Company clients may allocate their tax-advantaged retirement dollars (those situated in Traditional IRAs, Roth IRAs, health savings accounts, etc.) toward investments in opportunity zones.

As nominated by individual states and certified by the U.S. Treasury, “opportunity zones” are economically-distressed communities that may seek investments to help revitalize these locations. QOFs are tax-advantaged mechanisms for supporting such communities. To encourage an inflow of capital, opportunity zone fund investors may defer taxes on garnered capital gains.

Alan Johnson, Business Development Manager at New Direction Trust Company, identified opportunity zone funds as intriguing investment models. Mr. Johnson, recognizing the potential benefits for investors and fund managers alike in using tax-advantaged savings vehicles in this type of offering, has worked diligently to equip every party involved with strategic information.

“Today’s investors may be more socially conscious. They may seek viable financial opportunities while supporting important initiatives,” said Mr. Johnson.

“New opportunity zone funds are forming on a regular basis, affording ample chances to invest in good causes without sacrificing earning potential. By investing with their self-directed IRAs, individuals can obtain similar tax-advantaged QOF earning potential from within their retirement plans.”

New Direction Trust Company is an IRA custodian with 35,000 clients and over $2.3 billion in assets under administration. They provide custodial services for self-directed retirement accounts that hold opportunity zone funds, real estate, private loans, and other “alternative” assets.

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Alan Johnson
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