Coverdell Education Savings Account

Coverdells Allow for Self-Directed IRA style Investing for College Savings

December 12, 2018/in Blog, Coverdell Education Savings Account, Uncategorized /by Jim Hitt

These days, lots of people understand that IRAs allow taxpayers to self-direct their investments – taking more direct control of their investments and allowing them more flexibility to diversify and avoid high expense ratios and assets-under-management fees commonly charged by Wall Street firms and mutual fund companies.

Not too many people realize that you can do the same thing within a Self-Directed Coverdell Education Savings Account (CESA) as well.

Recent changes to the tax code allow taxpayers to use Section 529 plans to cover elementary and secondary school expenses on a tax-advantaged basis – but at present, Section 529 plans do not allow you to use self-directed techniques to invest your family’s college savings.

Section 529s have much higher limits, but they also restrict your investment choices to whatever funds have been approved by state 529 plan administrators.

The deadline for Self-Directed CESA contributions for tax year 2018 is April 15^th, 2019.

About Self-Directed CESAs

A Coverdell education savings account (Coverdell ESA) is a trust or custodial account set up in the United States solely for paying qualified education expenses for the designated beneficiary of the account. There are certain requirements to set up a Self-Directed CESA:

When you establish the account, the designated beneficiary must be under the age of 18 or be a special needs beneficiary.

You must make the designation of the account as a Self-Directed Coverdell CESA when you create it.

The document creating and governing the account must be in writing, and it must meet certain requirements.

You can read more details about Self-Directed Coverdell CESAs in IRS Publication 971 – Tax Benefits for Education.

Advantages of Self-Directed CESAs

Self-Directed CESAs allow you to look beyond state-approved mutual funds for investment opportunities. Using a Self-Directed CESA, you can invest your college savings money in real estate, stocks,bonds, mutual funds, closely-held companies, venture capital, gold and precious metals, investment real estate near a college, partnerships, LLCs, farms and ranches and much more.

The account owner can transfer the assets to the benefit of any eligible family member under the age of 30.

Contributions are made with after-tax dollars. That is, there is no first-year deduction available for Self-Directed CESAs. However, investments within the Coverdell ESA grow tax-deferred, and withdrawals to pay qualified educational expenses are tax-free.

For Self-Directed CESAs, qualified educational expenses for college and post-secondary school include tuition, fees, books, supplies, equipment, and (if enrolled on at least a half-time basis) room and board.

For younger kids – elementary and high-school aged students – qualified educational expenses include tuition, fees, academic tutoring, special needs services,books, supplies, equipment, room and board, uniforms, transportation, computer equipment, software and internet access.

Disadvantages of Self-Directed CESAs

Self-Directed CESA contributions are capped at $2,000 per year – including Self-Directed CESA contributions.

If you are filing as a single taxpayer, your modified adjusted gross income(MAGI) must be less than $110,000 to qualify to contribute to a Coverdell ESA. For married couples filing a joint return, the MAGI limit is $220,000.

A trust or corporation can also make contributions to a Coverdell on an eligible student’s behalf but trusts and corporations cannot own IRAs.

Note: The income limits do not apply to organizations making ESA contributions. So,if your personal income exceeds the MAGI limits for Coverdells, you may be able to make a ‘back door’ contribution via a trust or corporation you control, or use a Section 529 plan, which has much more generous income limits.

Coverdell Success Story

Sarah started a Self-Directed CESA when her son was born 16 years ago,expecting to use it to fund college. Her investments within the Coverdell ESA did very well. As it turned out, her son had some special needs, and needed to attend a specialized middle school and high school. There were no good public education resources nearby, so she needed to enroll him in a private school.College enrollment is unlikely due to the nature of her son’s condition.

Her Self-Directed CESA account saved her thousands in taxes, since she was able to use tax free distributions from her Coverdell ESA to cover most of her son’s educational expenses.

Interested in learning more about Self-Directed IRAs? Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation. Download our free guides or visit us online at www.AmericanIRA.com.

How Your Self-Directed IRA Could Be Used Toward Student Debt With a Self-Directed CESA IRA

November 7, 2018/in Blog, Coverdell Education Savings Account /by Jim Hitt

It is as though students and parents need an education on how to deal with paying for getting an education. The positive is that there is a method of avoiding the trap that more and more families are falling into when it comes to getting a college education.

A recent survey showed that the “average” college graduate from 2016 has student loan debt of $37,712. What makes this more alarming is that this figure is 6% higher than a similar study of 2015 graduates.

This is not a recent trend. More than 44,000,000 Americans reportedly have an outstanding student loan balance. Total combined student loan debt is now estimated to be at $1.4 trillion.

The ripple effect of this is having an impact on the economy. The percentage of people between the ages of 18 and 24 who continue to (or moved back with) live with their parents is now the highest it has been since 1940, toward the end of the post-depression era.

Our purpose in pointing this out is to make you aware of a tax-free way to pay or help pay for a college education. The right planning could help prevent you and your family from becoming a part of one of the above statistical categories over the next few years.

A Self-Directed Educational Savings Account IRA (ESA) is structured to provide tax benefits while being used strictly to fund education. Also known as a Coverdell Account, this is intended to be funded by parents or grandparents of a school aged child.

Although you, as the Account holder, pay appropriate taxes on the contributions to the Self-Directed CESA IRA, the earnings can grow tax free, and must be used for education.

While college is the most common usage, your Self-Directed CESA IRA can be used for tuition to elementary and secondary schools, whether public or private. (Please note that there are some private and vocational schools which are not eligible for CESA funding based on government criteria.)

In some cases, related expenses such as computers and supplies may be eligible as Self-Directed CESA IRA expenses.

Here is another important consideration. One Self-Directed CESA IRA could take care of each of the children, not just one. You can contribute up to $2,000 annually for each beneficiary. Thus, if you have four children to put through college, you could contribute anywhere from $0 to $8,000 every year if and as you can.

You are able to transfer funds to any family member (under the maximum age of 30) to be used strictly for these educational purposes. The amount transferred to eligible family members may vary, such as with students going to different universities and facing much different tuition costs.

Being aware of this opportunity years in advance of the college years brings you a huge advantage. It allows you more time to grow your contributions to the Self-Directed CESA IRA with a goal of eliminating the need for student loans. Even a 50% reduction in student debt makes a difference in the years that follow.

Operating your Self-Directed CESA IRA is very similar to operating a Self-Directed IRA. You can invest in real estate, precious metals, technology, business, or be a private money lender under appropriate conditions.

Although you are taxed on the amount of your annual contribution(s) to your Self-Directed CESA IRA, profits generated through investments made are not taxable.

For example, suppose you are able to purchase a property through the Self-Directed CESA IRA and then sell it two years later. The sale of the property results in a $50,000 profit for your CESA, which is not taxed. If you had also contributed $5,000 per year for the past five years, you would now have at least $75,000 available for school funding from your CESA.

Using this example, if you have a couple more years to go before the educational expenses begin, you could purchase another property and look to increase your return on that investment to also add to your funds.

Once you achieve the educational goals for your family, you can continue to do what you have already been doing in terms of annual contributions AND investing in real estate, precious metals, etc. to increase your funds tax free. The difference is that you start (or more actively grow) a Self-Directed IRA. You can keep growing those funds, without a restriction on the annual contribution amount, toward your retirement years.

Remember the statistic we reported in the second paragraph? Suppose you started and grew your ESA and it paid your child’s education in full. Now, you could show that child how to put that “average” $37,712 into their own Self-Directed IRA and grow it into six figures available to them when they retire.

We can help you to reach that statistic instead!

Which is Better: The Self-Directed CESA (Coverdell Education Savings Account)? Or a Section 529 Plan?

July 30, 2018/in Blog, Coverdell Education Savings Account /by Jim Hitt

College costs continue to soar. According to data from The College Board, tuition and fees alone now average $34,740 at private colleges, $9,970 for state residents at public colleges, and $25,620 for out-of-state residents attending public universities, just for the 2017-2018 school year just past. Plan on adding another $10,000 to $12,000 for housing for students who do not live at home through college. American families need every break they can get.

Congress knows this, however, and has come up with several programs to help ease the financial burden on families sending children for college. Among them are the Self-Directed CESA and the Section 529 plan. Both enable parents to save money for college costs on a tax-advantaged basis.

Each plan has important advantages and disadvantages:

*Self-Directed CESA*	Section 529 Plan
Annual contribution limit: $2000 per contributor per beneficiary.	Limits vary by state but are generally much higher than Coverdell limits.
Contributions must be made before beneficiary’s 18^th birthday.	Up to $15,000 in contributions per person per beneficiary exempt from gift tax consequences ($30,000 per beneficiary exempt for married couple donors).
Owners can self-direct (invest in alternative asset classes, real estate, gold, or nearly anything else).	Cannot self-direct, in practice. Owners must use one of the state-administered funds.
Contributions are after-tax.	Contributions are after-tax.
Assets in the account grow tax-deferred.	Assets in the account grow tax-deferred.
Tax-free withdrawals to pay qualified educational expenses.	Tax-free withdrawals to pay qualified educational expenses.
Can be used for elementary and secondary education expenses.	Can only be used for post-secondary education.
10 percent penalty on withdrawals in excess of qualified educational expenses per year.	10 percent penalty on withdrawals in excess of qualified educational expenses per year.
All assets must be spent by the time the beneficiary reaches age 30.	No age limits – beneficiary can be any age.
Annual income limit to contribute: $110,000 for singles, $220,000 for couples.	No annual income limits.
No formal prepaid tuition plans available.	Prepaid tuition plans available.
No state residency issues.	State residency is very important for pre-paid tuition plans.
No guarantees (unless investor purchases annuities within the Coverdell with guarantees as part of the contract).	Some states may guarantee minimum growth in prepaid tuition contracts, or guarantee that the accounts will cover tuition costs if fully funded each year according to state guidelines
	10 Percent penalty is waived if student gets a full scholarship.

As mentioned in the table above, while Section 529 plans limit you to the state-approved investments, there are no such limitations with a Self-Directed CESA. If you open a Self-Directed CESA with American IRA, LLC, you can invest your Coverdell contributions and earnings as you wish, in any combination of conventional and unconventional asset classes you choose. Some common options include the following:

Real estate and REITS.
Tax liens and investments.
Private lending and mortgages.
Gold and precious metals.
Cash and money markets.
Farms and ranches.
Partnerships and LLCs.
Closely-held corporations.
Venture capital and private equity.

And much more.

Section 529 plans are potentially very beneficial thanks to their higher contribution limits and lack of income limitations. But many people like Self-Directed CESAs thanks to their utility in paying for elementary and secondary school expenses and supplies, such as laptops, etc.

Priorities: Retirement? Or Education

July 21, 2014/in Articles, Coverdell Education Savings Account, Self-Directed IRA Companies /by American IRA

It’s a heart-wrenching call. Few families are in the fortunate position of being able to fully fund all their retirement options and fully fund a college savings plan for their children or grandchildren. If financial aid, scholarships or the GI Bill are not forthcoming, nearly all of us have to make tradeoffs.

Among the options are Self-Directed IRAs and Self-Directed Coverdell Education Savings Account (ESA). These accounts allow for the purchasing of assets within the account and the profits grow tax-free and/or tax-deferred (depending on their income bracket tax savings can be as high as 40%). That means they can use those additional dollars to get to their savings goals more quickly.

So if you have to choose, what should take priority? We believe a Self-Directed IRA and/or a Self-Directed Solo 401(k) is the answer. Here’s why:

Your child or grandchild (henceforth, “child”) can borrow money against future earnings to go to college. No one is going to lend you money to retire on – unless it’s against assets such as real estate you’ve already earned.

Your child may earn scholarships. You don’t have to be an All State-quality football player to get a lucrative scholarship. A wide variety of scholarships are available for students of all kinds:

Academic
Musical (especially in low-brass instruments)
Art
Ethnic scholarships from a variety of benefactors
Special scholarships for disadvantaged children
Scholarships for the children of veterans
Scholarships for veterans
Reserve Officer Training Corps (ROTC) scholarships for future leaders of Armed Services
Local service group scholarships from groups like the Kiwanis and Rotary Club

And many others.

There aren’t too many similar supplemental funding opportunities for your retirement!

Your child may qualify for need-based financial aid. Now, if you’re extremely wealthy, this may not be in the cards, of course. But for those families toward the fat part of the wealth distribution bell curve, it is a major planning factor.

Your child may join the Armed Services and therefore qualify for the valuable Post-9/11 GI Bill.

Your child or grandchild may choose not to go to college at all. It’s not the best thing for everyone.

You may be able to borrow against a Self-Directed Solo 401(k) if you so choose. If you are a self-employed or closely-held business owner and you want to create your own Self-Directed Traditional 401(k) to allow for this feature, give us a call.

You can withdraw up to $10,000, penalty-free, from a Self-Directed IRA, if you choose, to help fund qualified education expenses for an immediate family member.

Student loan debt interest is tax-deductible. Your senior day care, nursing home and long-term care expenses and insurance premiums are generally not.

Students can qualify for student loan payment deferment or forbearance programs if they run into trouble. There are no similar programs for retirement expenses.
College degrees are no guarantee of a good job or career. Far from it. A recent survey from the Urban Institute found that as many as 25 percent of college degree holders were working in jobs that did not require a college degree at all.
No parent wants to be reliant on their adult children for living expenses – even if they got that way by overfunding education at the expense of their own retirement plans.

Exception: Does your child attend private school? Or does he or she have significant educational expenses coming up? For example, boarding school costs, computers/learning technology or tutoring? If your family is going to incur these expenditures anyway, regardless, you may want to explore funding them via a Self-Directed Coverdell Education Savings Account (ESA). This is a special account you can contribute to save in advance for education costs, and expenditures for qualified educational expenses are tax-free and penalty-free. They have an advantage over Section 529 plans in that you can use them for elementary and secondary education expenses and not just college expenses.
There is no tax-deduction available for Self-Directed Coverdell Education Savings Account (ESA) contributions. Essentially, they are taxed similar to Roth IRA accounts, but there is no RMD. You just have to use the money before the child turns 30 (except for special-needs individuals). You have until April 15^th, generally, to make contributions for the preceding tax calendar year.

Be sure to mind your contribution limits: $2,000 per beneficiary, and $2,000 per contributor per year.

In essence, if you properly manage the account, this means the first $2,000 of a child’s educational expenses at the elementary, secondary or college level can be tax-free. If you are planning on sending your children to private schools anyway, and you otherwise qualify for a Self-Directed Coverdell Education Savings Account (ESA), it may make sense to prioritize Coverdell contributions you were going to spend anyway over retirement savings vehicles.

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Is a Self-directed IRA Safe?

July 25, 2013/in Coverdell Education Savings Account, Coverdell Savings Account, Health Savings Account, Health Savings Account, Real Estate IRA Investing, Resources, Roth IRA, Roth IRA, Roth IRA, Self-Directed IRA, Self-directed IRA Account, SEP, SEP IRA, Solo 401K, Traditional IRA, Traditional IRA /by American IRA

FDIC Insured

All un-invested cash in your self-directed IRA is FDIC insured.

As a note, FDIC insurance only covers cash balances, not assets. All credit card transactions are safe — American IRA is certified by SecurityMetrics. All accounting is processed through a top-rated trust accounting system. We maintain professional insurance coverage, including a crime shield policy and an errors and omissions policy.

Asset Vesting with Your Self-directed IRA

All assets are vested in the client’s name at the time of purchase. American IRA, LLC for the Benefit of Client’s Name IRA.

Investing with Your Self-directed IRA

Investing within a self-directed IRA is completely within the investor’s control. Is it safe? Yes, to the extent that the investor controls it. Here’s something that’s overlooked many times when we’re talking about safety between the securities industry, and let’s say in this case we’re talking about the real estate industry. Each investment has its own characteristics as to safety.

In the real estate investment arena, take a look at this example – $100,000 investment in 2000 inside a self-directed IRA in a single-family home. In 2013, the value doesn’t matter. The investor’s not selling the property. It may have gone up and it may have gone down.

Here’s an absolute certainty. It had 12 years’ worth of rental income so far and it’s still free and clear, versus investing in securities, which are absolutely out of your control, out of the investor’s control completely or anybody else’s control for that matter.

With $100,000 invested in 2000 in Washington Mutual Bank, the 2013 value is zero. Washington Mutual Bank was the biggest bank in the country when it failed in the early 2000’s. There is no guarantee in the securities industry any more than there is in the self-directed industry, but at least in the self-directed industry you have a way of controlling your risk by investing in what you know and understand, and you can do your own due diligence.

Types of Investment Accounts within a Self-directed IRA

Here are the types of investment accounts that you can utilize. It’s not just an IRA.

The Self-DirectedTraditional IRA, which is the one you’d be familiar with, which allows for you to make a tax deductible contribution.
The Self-Directed ROTH IRA on the far right is the one that you hear a lot about, which is the account that is absolutely tax free when the profits come out at the end. However, you do not get a deduction when you make the contribution.
A Spousal IRA can be either a traditional or a ROTH. The way that works is that if you’re under 50, you’re only allowed to put away $5,000 a year. If you have a nonworking spouse, they’re also eligible for an IRA, either a traditional or a ROTH, and they too can put away the same $5,000.
Another type of account is an employer based plan, which is a SEP IRA. If you’re self-employed, we provide servicing for SEP IRA Plans – Simplified Employee Pension plans – which is an employer funded plan. We also provide services for the simple, which is an employee funded plan with a contribution from the employer.
The Self-Directed 401(k), which is a plan that’s for people who are self-employed – a sole proprietor, LLC or corporation – and for people who don’t have any common law employees, meaning that they don’t have anybody that’s on W-2 for greater than 1,000 hours a year. It can be a husband and wife that are in a business. It could be a couple of partners. The Solo 401k, provided you qualify for it, basically is a self-directed account on steroids. It gives you so many features and opportunities that are absolutely incredible.
A Coverdell Education Savings Account is an account that you can put away for anybody. Typically it’s grandchildren or children. That too can be self-directed.
You can put money away in a Health Savings Account, and that works in many ways like a ROTH. You put the money in there, except you get a deduction. You can pay your medical expenses out of it, and it comes out absolutely tax free and you pay the medical expenses. It’s a great tool.

The Sky’s the Limit!

With the multitude of investment accounts available and the wealth of investment types allowed within those accounts, the sky really is the limit when it comes to what you can do with your self-directed retirement account.

For more information, or to explore your options, call American IRA today at 866-7500-IRA (472). We look forward to working with you.

The Coverdell Education Savings Account – Invest in our Future

March 29, 2013/in Coverdell Education Savings Account, Coverdell Savings Account, Resources /by American IRA

As you may have already discovered, self-directed IRAs are a very flexible investment method, but did you know that you can also self-direct education savings accounts with American IRA? It’s true! Many non-traditional assets can be easily incorporated into your IRA, and today we’ll reveal one of the most powerful ways you can sow a seed into your family’s future.

The destiny of our nation is directly connected to upcoming generations. Even so, extended education is quickly becoming more and more expensive and it has never been more essential for up and coming youth who aim to succeed in life. If you want to invest in your child’s future and thus invest in the nation at large, a Coverdell Education Savings Account is one of the most effective paths to their success.

So what is a Coverdell account? Let’s begin with something that may be a bit more familiar; namely 529 plans. A 529 plan allows money to grow tax-deferred, and the proceeds can also be withdrawn tax-free for qualified education expenses at a qualified institution. Take note of the last sentence’s emphases – government regulations are very specific on these points.

Here’s what makes a Coverdell Education Savings Account different: like a 529 plan, these accounts cover colleges and universities, but unlike a 529 they also cover qualified expenses at primary and secondary schools!

According to an article on Good Financial Cents, some of the other key differences include three things:

1) Total contributions for a beneficiary can be no more than $2,000 per year

2) The account has an income limit – your adjusted gross income cannot increase above $110,000 if you’re single or $220,000 if married and filing jointly

3) A beneficiary must be younger than 18 when the account is opened and they must be spend the money before reaching 30

Keeping those points in mind, it’s never been easier to invest in the future! So, does a Coverdell Education Savings Account sound right for you?

If you have any questions about opening a new account, contact us at 1-866-7500-IRA(472) or info@americanira.com. If you’d like to transfer a Coverdell Education Savings Account, contact us at 1-866-7500-IRA(472) or transactions@americanira.com or click here for more information.

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Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Speaks About the Historically Low Savings Account Interest Rates and Offers Expert Opinion!

October 30, 2012/in American IRA News, Articles, Coverdell Education Savings Account, Health Savings Account, Other Investments, Real Estate IRA Investing, Roth IRA, SEP, Simple IRA, Solo 401K, Traditional IRA /by American IRA

Jim Hitt, CEO of American IRA-a national self-directed IRA provider, speaks about the historically low savings account interest rates and offers expert opinion! CNN Money reports “Higher yields on savings? It will be awhile” Jim Hitt shares some little-known solutions available to everyone with a retirement account.

This report from CNN is one of many recent reports which clearly point to the fact that people need to ‘take action’ in order to build savings for their retirement years. In fact, CBS Philly reports that a recent survey shows 40 Percent of Americans have $500 or less in savings. Jim Hitt interjects, “I speak to many folks who are scared about not having enough to survive on during their retirement years. I tell them all that having a good plan and being prepared is the key to eliminating that fear. I firmly believe that self-directed IRAs and self-directed 401(k)s are the solution. People have got to take control! Sitting on those savings accounts and hoping they grow is like incubating an alligator egg and hoping a chicken hatches.”

Here’s what people need to know…self-directed IRAs and self-directed 401(k)s allow people to take control of what their IRA and 401(k) invest in. The options are wide open. People can invest in Real Estate, Private Lending, Precious Metals, Limited Liability Companies, Self Storage Units, and much more.

A great example is a client who loaned $300,000 from their Real Estate IRA to an individual who needed funds to purchase a large self storage facility valued at $400,000. They agreed on a 6% interest only loan with a balloon payment due in 5 years. After 5 years, the client had collected $90,000 in interest and the investor paid back the principal amount of $300,000.

A $90,000 profit in 5 years is a great return for the client and the investor was able to purchase a self storage facility that they otherwise would not have had the funds to purchase. This is just one example of how individuals can make those retirement accounts grow.

What’s the Buzz!?! Is it a bird? Is it a bee? Read on and You’ll See!

October 11, 2012/in American IRA News, Articles, Coverdell Education Savings Account, Health Savings Account, Other Investments, Roth IRA, SEP, Simple IRA, Solo 401K, Traditional IRA /by American IRA

Buzz Words and Warning Signs

As investors, we must always be aware that there are fraud promoters lurking in every corner waiting for their next opportunity to pounce on an un-expecting investor. To help you avoid falling victim to fraud, here’s a recent study of SEC Investor Alerts which show some very obvious but worth mentioning ‘buzz’ words every investor should watch out for:

Guaranteed
Can’t Miss
Extremely High Returns
Safe and Risk Free
Promised _____% Returns

In the SEC alerts they are primarily discussing investing in LLCs and Private Placements; however, these warnings are absolutely applicable to real estate transactions, private loans, or any other investment a person would consider making.

Examples:

Note: The information presented in these examples has been taken directly from the September 2011 SEC Investor Alert.

Jerry Smith and Jasen Snelling bilked investors out of more than $4.5 million in a nearly decade-long Ponzi scheme. They told investors they were talented day traders and ‘promised’ up to 20% returns.

James Elton Warr through Warr Investment Group LLC and other entities, defrauded the public through their illegal and deceptive sales of securities in real estate programs, raising at least $970,000 from 30 investors. They claimed investors would receive a ‘guaranteed’ 8% annual return and that the real estate investments were a ‘safe and lucrative’ alternative to more traditional investments such as certificates of deposit and stocks.

Let’s not forget Madoff ($50 billion) and Stanford ($8 billion)!

What’s so Bad about Those Buzz Words?!

There is nothing inherently wrong with those words. The problem is that any honest investor knows that there are no guarantees and nothing is safe and risk free. A responsible investor will share their knowledge of the asset they are selling you including all expenses and income they have received over the period of time they have owned the asset they are trying to sell you.

Awareness

American IRA, LLC is very aware of the risks that investors face. That is why we have created educational tools about many facts everyone needs to know in order to do their ‘due diligence’ on their investments. Awareness is key in keeping your hard earned dollars safe.

Minimizing Risk

The best way to minimize risk is to do your ‘due diligence” on every asset you purchase; always consult with professionals; walk, no, RUN away if they use the ‘buzz’ words, and never enter into an investment that does not meet your goals.

All investments have inherent risks. With proper due diligence and a professional team, risk can be managed but not eliminated-that is our job as investors. If you don’t want to take a risk whatsoever, tongue in cheek I say “Put it in U.S. Bonds or FDIC Insured CDs…though as you all know…Bonds and CDs are offering very low returns”.

Disclaimer

American IRA, LLC does not give investment advice. They do offer guidance as to the rules and regulations related to their self-directed accounts and the benefits of different account types so that their clients can take that information to their professionals to discuss the ramifications of various decisions on their individual situation.

For more information, or to explore your options, call American IRA today at 866-7500-IRA (472). We look forward to working with you.

Call to Action: Protect the Value of Inherited IRAs – American IRA Announces Recent Proposed Provision Removal

February 28, 2012/in Articles, Coverdell Education Savings Account, Health Savings Account, Prohibited Transactions, Roth IRA, SEP, Simple IRA, Traditional IRA /by American IRA

Call to action: protect the value of inherited IRAs. American IRA, a National Provider of Self-Directed IRAs, announces recent proposed provision removal. According to the Washington Bureau “Retirement industry officials are gearing up to remove a provision in Senate legislation that would reduce the value of inherited IRAs.”

The Washington Bureau recently reported that there is a provision included in S. 1813, the Highway Investment, Job Creation, and Economic Growth Act that would reduce the value of inherited IRAs also known as ‘Stretch IRAs’. The report goes on to explain “these ‘stretch IRAs’ are sometimes used to reduce taxes by people who designated a young person as a beneficiary, thereby giving them a long opportunity to increase the value of the IRA through inside buildup.”

Self-Directed IRAs-A Retirement Tool Or A Retirement Bomb?! American IRA Announces This ‘Almost’ Excellent Spot on Blog Post

February 7, 2012/in Articles, Coverdell Education Savings Account, Health Savings Account, Roth IRA, SEP, Simple IRA, Traditional IRA /by American IRA

Self-Directed IRAs-‘A Retirement Tool Or A Retirement Bomb?!’ American IRA-A National Provider of Self-Directed IRAs Announces This ‘Almost’ Excellent Spot on Blog recently posted by bgmwealth.com.

This blog post talks about a recent Minneapolis, Star Tribune article that reported on a Ponzi scheme that caused self-directed IRA holders to lose money. The blog goes on to explain that it is critical for self-directed IRA investors to use their “due diligence” in researching investments before releasing precious funds from their retirement accounts.

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