Self Directed IRA Fresno, CA

Self Directed IRA's

A self-directed IRA puts you in the driver seat of your financial future, giving you absolute freedom and control to invest in physical assets you know and understand best. The power of a self-directed IRA comes from the almost endless investment options. You are not limited to just stocks, bonds, ETF's and mutual funds - you can invest in real estate, private businesses, tax liens, precious metals and more. The major win for you - you can reap the asset protection and tax advantages that come with retirement plans; like tax free or tax deferred income. 

What Is a Self Directed IRA?

A Self-Directed IRA is technically no different than any other traditional IRA, ROTH IRA or 401k. The government created the IRA to allow investments to grow tax-free or tax-deferred compounded over time to maximize growth. The IRA can also qualify for yearly tax-deductions (depending on the account type), provide asset protection, and assets may be passed to future generations for qualifying accounts. 

A self directed IRA is unique due to the available investment options and because it puts the IRA owner in control.

The Power of Self-Directed IRA's

If you have knowledge, expertise and investment success with investments outside the market (or you are looking to leverage your money away from the markets and take control of your financial future) Self-Directed IRA's may be the ticket you are looking for. 

Advantages of Self-Directed IRA's

  1. Investment Diversification - With a Self Directed IRA you can diversify away from the markets and into hard assets like real rental property (commercial and residential), tax liens, precious metals, private businesses like a friends small business, C-corporations, private equity partnerships, foreign currencies and much more. If you have specific expertise or your a seasoned real estate investor looking to defer income from your own rental properties you can continue to invest in what you know best and get favorable tax treatment while doing so. 
  2. Lasting Wealth Through Tax Advantages - Investing over time in tax-advantaged accounts like Self-Directed IRA's (Roth IRA, Traditional IRA, 401k, SEP, SIMPLE IRA) can have a beneficial affect on your future wealth. 
  3. Provide Wealth for Your Future Generations - Certain Self Directed IRA's allow the passing of assets to beneficiaries after death with little or no tax implications, allowing you to stretch wealth over generations. 

The example assumes contributions of $4,000 a year, for 30 years, assuming 8% compound interest in a tax-advantage account vs. in an account that is taxed at a 31% rate.

Understanding UBIT and UDFI Taxes

Your self directed IRA can purchase real estate using financing as long as the loan is non-recourse. If you do use financing, unrelated business income tax (UBIT) applies. 

Learn more


Seven Things You MUST Know about Investing in Real Estate IRA's


1. Your IRA Cannot Purchase Property Owned by You or a Disqualified Person.

One of the most common questions about real estate IRAs is: “Can my IRA purchase a property that I currently own?” The answer is always no.
IRS regulations don't allow transactions that are considered "self-dealing," and they don't allow your self-directed IRA to buy property from or sell property to any disqualified person, including yourself.

2. You Cannot Have “Indirect Benefits” from Property Owned by Your Self-Directed IRA.

Can your self-directed IRA purchase a vacation home for you to occasionally use? Can you rent office space for yourself in a building that your self-directed IRA owns?
No.
The purpose of the IRA is to provide for your retirement at some future date. It's not intended to benefit you (or any other disqualified person) today. If your IRA engages in a transaction that, in some way, benefits you or a disqualified person, this is considered an "indirect benefit".

3. IRA Investments Are Uniquely Titled.

You and your IRA are two separate entities. As such the investment needs to be titled in the name of your IRA—not to you personally. All documents related to the investment must be titled correctly to avoid delays.
The correct title for most real estate IRA investments is:
"[Custodian Name] [for benefit of] (FBO) [Your Name] IRA"

4. Real Estate in an IRA Can be Purchased without 100% Funding from Your IRA.

You can purchase property in more ways than just an outright purchase of the full amount from your account. These other options include using undivided interest and partnering with others. You can also finance an investment with your IRA, but it must be structured properly.

5. IRA Investments that Use Financing Must Pay UBIT.

Your self-directed IRA can purchase real estate using financing as long as the loan is non- recourse. If you do use financing, unrelated business income tax (UBIT) applies.

6. Expenses Must Be Paid from Your IRA.

All expenses related to property owned by your self-directed IRA (maintenance, improvements, property taxes, condo association fees, general bills, etc.) must be paid from your IRA.

7. Real Estate IRA Income Must Return to Your IRA.

All income generated by property owned by your self-directed IRA must be paid into your IRA.

Please Note: This information presented above for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with legal, tax, and accounting professionals.

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