Archive for August, 2013

Self Directed IRA Rules Are Crucial To Know

Monday, August 26th, 2013
Self Directed IRA Rules

It is very important that you understand the rules related to Self Directed IRA and 401k investing.  I recently read an excellent article by the Wall Street Journal where someone was not familiar with the rules related to self directed IRA investing and their entire IRA became disqualified.

There are many investment benefits to a Self Directed IRA and 401k including:
  • Real Estate
  • Hard money lending
  • Precious Metals (Gold, Silver, Platinum)
  • Private placements or offerings (oil & gas, real estate, etc)
  • Foreign Real Estate
  • Funding a business
  • Trust deeds
  • And Many Others!

With all the benefits that Self Directed IRA and 401k allow it is important that you follow all the IRS guidelines related to making purchases inside your IRA or 401k.  Below is the portion of what would be disqualified inside a Self Directed IRA.

“Both ERISA and IRS rules prohibit certain transactions between a qualified plan and “disqualified persons.” The purpose of the rules is to prevent self dealing and to minimize conflicts of interest that could adversely affect the plan. ERISA §§ 406-408 and Internal Revenue Code § 4975 detail these rules. Other regulations and notices issued by the DOL and IRS further refine and explain the rules. Since your plan is self-directed, it may be possible for you or other participant to purchase nontraditional assets with plan funds. Some of these transactions could violate the rules. Examples: using your plan funds to purchase a property you (or certain related parties) already own; having your plan purchase an investment property and then renting it to your child (even at fair market rent); receiving compensation from an entity in which your plan has a significant ownership; a relative providing sweat equity labor or other services to a business owned by your plan, etc..”

If you would like to speak with Accuplan about your specific situation feel free to contact me.

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1.801.683.9291
[email protected]

Gold and Silver in your IRA

Tuesday, August 20th, 2013

Gold and Silver in your IRA

Owning gold and silver in your IRA is a great alternative investment that you can feel and touch. Below are the benefits of gold and silver inside your IRA:

  • Gold and silver have tremendous upside pricing potential, due to inflation risks, with little downside risk.
  • They are used as inflation and a deflation hedge
  • They are highly liquid, they can be either exchanged directly for other property or cashed in easily
  • They are universally recognized as money everywhere in the world, there are no exchange rate issues
  • They can be held in both Roth and Traditional IRAs
  • Physical gold and silver holdings are not subject to IRS reporting or taxes (with some exceptions in an IRA)
  • They are a great diversifier in a balanced investment portfolio
  • Gold is highly portable – $100,000 of gold coins weighs only 6.25 pounds (at $1,000 per ounce)
  • They are easy to store
  • Gold and silver, unlike paper money, cannot be devalued by government action and any government intervention in gold markets would soon lose its effect
  • Gold and silver held in a private or secret stash are highly secure and protected from government
  • Metals Storage. All bullion or coin purchases for your IRA will be shipped to and stored at a qualified depository institution. The depository furnishes us with the details of the bullion or coin items received and stored for your IRA. Your gold and silver investments are held securely in a storage vault which is dedicated to our clients. The special storage is not only in a highly secured facility, but it is also bonded and insured for added protection.

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    1.801.683.9291
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    What Is a Self-Directed 401k & How Do You Set One Up?

    Wednesday, August 7th, 2013

    Self-directed 401k in real estate

    Today we will be going over the basics of a self-directed 401k, which we call a one.k. Contact our professionals for more information or for help setting up a self-directed 401k.

    What is Self Direction?

    Most traditional 401ks are limited to investing in traditional investments such as a mutual fund. There are many other viable investment options that are not available through these traditional means.

    What is a one.K?

    It is a self-directed 401k plan for your company. This enables you to self direct investments on behalf of your 401k.

    Investment Choices for a One.k

    There are many different types of investment choices that can be made through a one.k. Some of the options available are: private LLCs, or corporations, private lending, real estate and precious metals.

    There are times real estate investment opportunities present themselves, yet your main source of capital is locked up in a traditional retirement account. Creating a one.k eables you to take control and capitolize on real estate investment opportunities. This goes for the other types of investments as well.

    How It Works?

    1- We consult to determine what your objectives are.

    2- We create an LLC or C-Corp for you.

    3- We create and setup the 401k plan for the company

    4- You rollover your IRA or 401k into the new plan

    5- You establish banking and investment accounts

    6- You direct the investments as the plans’ Trustee

    Setting up a one.k should be an enjoyable experience. At Accuplan Benefits Services we offer: low custodial fees, flat annual fees, online account access, 24-48 hour processing times and expertly trained customer support.

    To learn more about one.k plans contact us at Call 1-800-454-2649

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    Self Directed IRA for Real Estate Investing Update

    Friday, August 2nd, 2013

    Real Estate Trends & Self Directed IRA’s

    What Has the Trend Been For Real Estate and What This Means For Self Directed IRA’s

    The housing market has had its fair share of ups for quite a while but did produce quite a disappointment with a starts declining 9.9%. There was also a decline in building permits in June compared to May.

    What is causing this?

    It appears that one of the biggest factors for the decline in starts was due to multi-family starts. Multi-family starts dropped 26.2%, while single-family starts dipped only 0.8%.  Looking at permits we see that multi-family construction declined 21.4%, while permits for single-family starts only decreased 0.6%.

    Insights for Self Directed IRA Real Estate

    As we have said time and time again we really feel that we seem to have formed the bottom with support in the real estate market. Even though we see that the market went down in June overall things are looking pretty good. Prices still haven’t settled but there is stability. We are seeing inventories move and liquidity is improving.

    For those self directed IRA real estate investors looking for a buying opportunity now is a great time for hard asset investing. With worries and talk of stock market crash and the strength of the US dollar as weak as ever, moving to hard asset investing is smart.

    It will be interesting to see what the next couple of months hold for the real estate industry but it is still recommended to hold investment real estate because of inflation, asset appreciation and income.

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