How Can a Self-Directed HSA Work for you?

April 10, 2019/in Blog, Health Savings Account /by Jim Hitt

People who want control of their investment decisions are choosing self-directed accounts. They like the secure feeling that comes from making their own decisions rather than having a broker or custodian make them. That’s why more and more retirement investors are turning to Self-Directed IRAs. They receive a wide spectrum of investment choices and the freedom to pick those with which they are most comfortable.

Now, that same mindset is being applied to health savings accounts (HSAs). Self-Directed HSAs afford you the same control and choices that you get with a Self-Directed IRA. Of course, the primary benefit of an HSA is tax-free growth of the income that your account generates, and with a self-directed account, you have the potential to produce quite a bit with investments in real estate and private stocks.

But first, take a look at the basics of a health savings account:

What is a Self-Directed HSA?

The IRS created the health savings account as a tax-advantaged method for paying medical expenses. If they qualify, taxpayers receive a tax benefit for medical expenses whether they itemize or not. The Self-Directed HSAs are available to those who have a high deductible health plan. If you qualify, your contributions are made with pre-tax dollars and are tax deductible. Earnings and qualified withdrawals are tax-free.

What is a High Deductible Health Plan (HDHP)?

An HDHP is a health insurance plan, obtainable from most health insurance providers, that has a lower monthly premium and a higher yearly deductible than other health insurance plans. To qualify as a high deductible health plan, the plan’s deductible may not be lower than $1350 for an individual and $2700 for a family. If your plan meets or exceeds these amounts, you may open a Self-Directed HSA.

Other benefits of having a Health Savings Account

Contribution limits have risen for 2019 to $3500 for individuals and $7000 for families.
Unused funds roll over into the next year—no “use it or lose it”.
If you change employers, your Self-Directed HSA goes with you.
The interest earned in the account is not taxable.
Distributions used to pay for qualified medical expenses are tax-free.
Contributions made on your behalf by your employer, including any pre-tax contributions you make, are typically not taxable.
If you choose a Self-Directed HSA, your investment choices are expanded from stocks and bonds to alternative investments such as real estate, notes, private equity, options, tax liens, gold, and more
You can use it for living expenses after you turn 65 by paying taxes on the withdrawals

Keep in mind that you are not allowed to treat insurance premiums as qualified medical expenses unless the premiums are used for the following:

Long-term care insurance.
Health care continuation coverage (such as coverage under COBRA).
Health care coverage while receiving unemployment compensation under federal or state law.
Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

What are the advantages of a Self-Directed HSA?

You may, of course, invest in mutual funds, common stocks, and bonds just like you would in the typical HSA. The advantage of self-direction comes from all those alternative investments that are not available from banks, insurance companies, and mutual fund companies. Imagine making your account grow through the years with the help of investments such as:

Real estate that includes single-family and multi-unit homes, apartment buildings, condominiums, land, or commercial property.
Private companies.
Precious metals like gold, silver, and platinum.
Private lending notes.
Tax
Joint ventures and partnerships.
Single-member limited liability corporation (LLC).

Let our experts help you get started

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.

Self-Directed HSAs (Health Savings Accounts)

July 6, 2018/in Blog, Health Savings Account /by Jim Hitt

Eligible individuals are permitted to establish and maintain Health Savings Accounts (HSA)s, for the purpose of paying and/or reimbursing themselves for eligible medical expenses. Like IRAs, Self-Directed HSAs must be established and maintained with a qualified custodian/trustee, such as a brokerage firm or bank.

Self-Directed HSAs can be established by individuals or by employers; and contributions are deductible by the contributing party.

Eligibility

An individual must meet certain requirements, in order to be eligible for a Self-Directed HSA. These are:

The individual must be covered under a high deductible health plan (HDHP).
The individual must have no other health coverage, unless an exception applies.
The individual must not be enrolled under Medicare.
The individual must not be claimed as a dependent on another persons’ tax return, for the year in which the Self-Directed HSA contribution is made.

Individuals should consult with their tax professionals, to determine eligibility for HSAs.

Self-Directed HSA Contributions

Self-Directed HSA contributions must be made by the owner’s tax filing due date. Extensions do not apply.

An individual may claim a tax deduction for Self-Directed HSA contributions made to his/her HSA. If the contribution is made by the individual’s employer, the amounts are deductible by the employer but are excluded from the individual’s income.

Self-Directed HSA contributions grow on a tax-deferred basis, and are tax-free when distributed, if the distributions are used to pay for qualified expenses.

The contribution amount that an individual is eligible to make, is dependent on his/her:

Type of HDHP coverage,
Age,
Date of eligibility, and
If the individual ceases to be an eligible individual, the date on which such eligibility ceases.

The contribution limit for 2018 is $3,450 for those with self-only HDHP coverage, and $6,900 for those with family HDHP coverage. An additional catch-up contribution of $1,000 is permitted for individuals who are at least age 55 by the end of the year.

There are other factors that could affect the contribution eligibility, such as whether one is eligible for the entire year. Individuals must consult with their tax professional to determine whether they are eligible to contribute the full amounts stated above.

Contributions in excess of the statutory limit could be subject to excise tax, if not corrected properly and timely.

Distributions

During the Self-Directed HSA owner’s lifetime, distributions are optional.

The tax-treatment of distributions depend on whether they are ‘qualified’ or ‘nonqualified’.

Distributions from Self-Directed HSAs are tax-free if they are used to cover qualified medical expenses, which are expenses that would generally qualify as deductible medical and dental expenses on the individual’s tax return. Individuals should consult with their tax professionals to determine whether particular expenses meet this requirement.

Eligible expenses include those incurred by the Self-Directed HSA owner, as well as:

His/her spouse.
All dependents he/she claim on his/her tax return.
Any person he/she could have claimed as a dependent on his/her return except that:
1. The person filed a joint return,
2. The person had gross income of $4,050 or more, or
3. He/she and spouse if filing jointly, could be claimed as a dependent on someone else’s return for the year.

Generally, expenses incurred before the Self-Directed HSA was established are not considered eligible expenses.

Distributions that meet the eligibility expenses requirements are considered qualified distributions. Nonqualified distributions are treated as ordinary income to the Self-Directed HSA owner, and are subject to a 20% penalty, unless an exception applies.

Professional Help Is a Must

The information provided herein is a high-level overview of the rules that apply to Self-Directed HSAs, and failure to operate an HSA within the confines of the application regulations and operational requirements could result in the HSA owner being subject to excise taxes, penalties and ineligibility to deduct contributions.

Individuals should consult with a tax professional who is knowledgeable in the area of Self-Directed HSAs, to ensure that all the applicable rules and regulations are followed.

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.

IRS Raises 2018 Contribution Limits for Self-Directed Health Savings Accounts

May 9, 2018/in Blog, Health Savings Account /by Jim Hitt

Some good news for those of you with Self-Directed Health Savings Accounts (HSAs): The IRS recently announced the maximum allowable Self-Directed HSA contribution for family plans 2018 will be $6,900. That is an increase of $50 from the prior limit of $6,850. The maximum allowable contribution limit for single participants for 2018 is $3,450. The limits are the same for Self-Directed HSA accounts.

The IRS had previously reduced the allowable contribution from $6,900 to $6,850 for 2018, which caused confusion and headaches for employers and Self-Directed HSA participants alike.

Those ages 55 and older may contribute an additional $1,000 to their Self-Directed HSA plans on an annual basis.

Employers who have already communicated the lower limits to employees should make it clear to Self-Directed HSA participants that the $6,900 limit has been reinstated. This will allow employees to increase their annual contribution to reflect the new limit – thereby enabling them to maximize the benefit of the Self-Directed HSA.

The other Self-Directed HSA limits are unaffected:

Minimum annual HDHP deductible

Single: $1,350

Family: $2,700

Plan out-of-pocket maximum for Self-Directed HSA eligibility:

Single: $6,650

Family: $13,300

Self-Directed Health Savings Accounts allow individuals to save money for future health expenses on a tax-advantaged basis. Contributions to Self-Directed Health Savings Accounts grow tax-deferred, and distributions to pay for qualified health expenses are tax free.

Contributions to Self-Directed HSAs are pre-tax, and assets in an HSA grow tax-free if they remain in the account. Distributions for qualified medical expenses are likewise tax-free. Distributions for other reasons are subject to income tax, plus an additional 20 percent penalty on non-qualified withdrawals prior to age 65, unless you are sooner disabled.

Employers can also offer Self-Directed HSAs, and even contribute to HSAs on employees’ behalf, provided the employee is also currently covered under a high-deductible health plan.

Employers and participants can get more information on the change to the annual contribution limit for Self-Directed HSAs from IRS Rev. Proc. 2018-27.

Benefits of Self-Directed Health Savings Accounts

Self-Directed Health Savings Accounts have several important benefits:

You can claim a tax deduction for your own contributions, or for contributions anyone other than your employer makes, even if you do not itemize deductions on Schedule A.
Contributions your employer makes to your Self-Directed HSA are generally excluded from income.
Self-Directed HSA assets are portable. You keep these assets, even if you leave your employer or get another kind of insurance coverage in future years.
Assets in Self-Directed HSAs are available to supplement income after age 65, when most people are first eligible for Medicare. You will still have to pay income tax on distributions, but there are no required minimum distributions and no 20 percent excise tax for withdrawals made after you turn 65.

Qualifying for a Self-Directed HSA

To be eligible for an HSA, including a Self-Directed HSA, you must meet the following criteria as of December 1^st of 2017.

You must be covered under a high deductible health plan.
You must have no other health coverage (with certain exceptions for those covered by the VA).
You must not be enrolled in Medicare.
You cannot be claimed on anyone else’s tax return as a dependent.

Self-Directed HSAs

Health Savings Accounts can be self-directed, just like any IRA. This means plan participants have far more choices in how they can invest money in their Self-Directed Health Savings Accounts. By opening an account with American IRA, LLC, you can take those assets and invest them in direct ownership of real estate, gold and precious metals, stocks, bonds, private placements, venture capital, tax liens and certificates, and a variety of other investment asset classes.

A Self-Directed HSA may benefit you if you want to increase your exposure to non-traditional or alternative asset classes, want to increase your potential investment returns, lower your overall risk, or both. For more information, see IRS Publication 969.

For more information on Self-Directed IRAs or how to set up your own Self-Directed HSA, call us today at 866-7500-IRA (472). Or visit us on the Web at www.AmericanIRA.com.

The Self-Directed HSA – Tapping Your Health Savings Account

July 25, 2016/in Articles, Blog, Health Savings Account, Health Savings Account, Home Link /by Jim Hitt

Have you been contribution to a health savings account for some time? If you’re in good health, you may be sitting on a fairly substantial sum. According to information from the Employee Benefit Research Institute and the New York Times, an investor contributing the maximum allowable per year to an HSA and who only generated a modest average 2.5 percent return could be sitting on as much as $360,000, if they didn’t need to spend anything down. And if they got just 5 percent, that number could be as high as $600,000. A skilled Self-Directed HSA investor can do quite a bit with a sum that big.

Nationwide, health savings accounts represent a lot of capital: As much as $30 billion as of the end of 2015, according to the 2015 Devinir Market Survey. This $30 billion is spread across 1.7 billion assets. Both assets and account numbers are expanding rapidly as the combination of high deductible health plans and health savings accounts gain in popularity among both individuals and employers. This leads us to our next subject, Self-Directed HSA and Retirement.

The primary purpose of the health savings account is, of course, to pay unreimbursed health care expenditures for yourself and your family. Contributions are pre-tax, and any distributions taken to pay for qualified health care expenditures are tax free. Unused balances continue to compound tax free. But if you withdraw money from your HSA before you turn 65 for non-qualified uses, you will have to pay income taxes, plus a 20 percent penalty. That’s twice as big as the 10 percent penalty that normally applies to early withdrawals of IRAs and 401(k)s.

But once you turn age 65, all of that money is fair game. You don’t have to pay any penalties for withdrawals for any purpose after that age. You simply pay the income tax on the amount you take out. It’s just like having an IRA at that point – except expenditures for health care expenses are still tax-free! If you had to raid an IRA to pay medical bills, you’d still have to pay income taxes.

This is why an HSA is a terrific asset to own.

HSAs have only been in existence for a little over a decade. But as long as you continue to contribute and remain in good health – or use other funds to finance health care expenditures – there’s no reason you can’t amass an amount that will make a definite positive difference in your retirement.

And like an IRA, you can choose to self-direct your HSA assets.

How? Simply open an account with American IRA, LLC, and fund it with your HSA assets, generally via a trustee-to-trustee transfer.

Then just tell us what you want to invest in – whom to wire your money to purchase the investment, and how much.

So doing opens a whole world of investments to the Self-Directed HSA owner:

Rental property
Private lending
Mortgage lending
Hard money lending
Tax liens and certificates
Fixing and flipping real estate properties
Private equity
Venture capital
Closely-held C corporations, LLCs and partnerships
Oil and gas investments
Farms and ranches
Horse training and breeding businesses
Fishing boats
Offshore businesses
Foreign real estate
Collateralized debt obligations

And much more.

A few tips: Remember the primary purpose of the health savings account: To pay health care expenses, either before or after you turn age 65. Liquidity is a factor: Keep track of your maximum out of pocket expenses for your high deductible health plan, as long as you’re in one, or for your existing health care plan or Medicare, and try to have that much in cash, cash equivalent or something easily and quickly converted to cash so you can pay those expenditures in the current year.

To learn more about the self-direction option for your health savings account, call us today at 866-7500-IRA(472), or visit us online at www.americanira.com.

We look forward to working with you.

The Self-Directed HSA – Tapping Your Health Savings Account

July 20, 2016/in Articles, Blog, Health Savings Account, Health Savings Account, Home Link /by Jim Hitt

Have you been contribution to a health savings account for some time? If you’re in good health, you may be sitting on a fairly substantial sum. According to information from the Employee Benefit Research Institute and the New York Times, an investor contributing the maximum allowable per year to an HSA and who only generated a modest average 2.5 percent return could be sitting on as much as $360,000, if they didn’t need to spend anything down. And if they got just 5 percent, that number could be as high as $600,000. A skilled Self-Directed HSA investor can do quite a bit with a sum that big.

Nationwide, health savings accounts represent a lot of capital: As much as $30 billion as of the end of 2015, according to the 2015 Devinir Market Survey. This $30 billion is spread across 1.7 billion assets. Both assets and account numbers are expanding rapidly as the combination of high deductible health plans and health savings accounts gain in popularity among both individuals and employers. May people don’t realize they can have a Self-Directed HSA.

Self-Directed HSAs and Retirement

This is why a Self-Directed HSA is a terrific asset to own.

And like an IRA, you can choose to self-direct your HSA assets.

How? Simply open an account with American IRA, LLC, and fund it with your HSA assets, generally via a trustee-to-trustee transfer.

Then just tell us what you want to invest in – whom to wire your money to purchase the investment, and how much.

So doing opens a whole world of investments to the Self-Directed HSA owner:

Rental property
Private lending
Mortgage lending
Hard money lending
Tax liens and certificates
Fixing and flipping real estate properties
Private equity
Venture capital
Closely-held C corporations, LLCs and partnerships
Oil and gas investments
Farms and ranches
Horse training and breeding businesses
Fishing boats
Offshore businesses
Foreign real estate
Collateralized debt obligations

And much more.

To learn more about the self-direction option for your health savings account, call us today at 866-7500-IRA(472), or visit us online at www.americanira.com.

We look forward to working with you.

Tips for Improving Your Required Minimum Distribution (RMD) Process – Part 2 of 2

February 24, 2014/in Articles, Blog, Coverdell Savings Account, Health Savings Account, Health Savings Account, Resources, Roth IRA, Self-Directed IRA, SEP IRA, Simple IRA, Traditional IRA /by American IRA

Welcome back. In Tips for Improving Your RMD Process – Part 1 of 2, we shared some tips to help you improve the processing of your required minimum distributions (RMD). Remember these distributions are required whether your account is a Self-Directed IRA or not. Here are few more tips to help you with the RMD process.

Tip 3: Rollover to Avoid RMD When Appropriate

The required minimum distribution (RMD) rules do not apply to Roth IRA owners. As such, if you have assets in a Traditional IRA, SEP IRA or SIMPLE IRA and you do not want to withdraw RMD amounts each year, you can convert those IRAs to a Roth IRA. Caution: For a conversion to a Roth IRA other factors must be considered; primarily, whether a Roth IRA is more suitable for you. Ideally, a Roth IRA analysis would need to be done beforehand to determine suitability. Please contact us if you have questions about Roth IRA conversions.

You can also rollover your Traditional IRA, SEP IRA and SIMPLE IRA to a qualified plan, 403(b) or governmental 457(b) so as to avoid being subject to the required minimum distribution (RMD) rules. Of course, this would work only if you are still employed by an employer that sponsors a qualified plan, 403(b) or governmental 457(b) under which you can defer beginning your RMD past age 70½ until retirement.

Caution: If you are at least age 70 ½ during the year that you plan to convert amounts to a Roth IRA or rollover amounts to a qualified plan, 403(b) or governmental 457(b) plan, you must take your RMD for that year before doing the conversion or rollover. Failure to follow this rule will result in an ineligible conversion or rollover of your RMD amount, which could result in penalties being owed to the IRS if not corrected timely.

Tip 4: Schedule RMD In advance

Generally, your RMD for the year can be calculated as early as January 1. This provides you with sufficient time to put measures in place that would help to prevent missing your required minimum distribution (RMD) deadline. Most financial institutions allow IRA owners to schedule distributions in advance. For instance, if you want your RMD to be processed on November 15, you can submit the instructions as early as January 2. If you choose to do so, follow-up to make sure sufficient cash is available to cover your requested amount.

Tip 5: Refigure Your IRA RMD Amount

Your RMD amount for the current year is determined by dividing the fair market value (FMV) of the IRA as of the previous year-end, by your distribution period for the current year. Your custodian is required to either provide you with the calculated amount of your RMD, or calculate the amount upon request. However, they are allowed to make certain assumptions that could result in the calculation being incorrect.

For example, if you converted an amount to a Roth IRA last year and recharacterized the amount this year, the recharacterized amount must be included in the FMV for the Traditional IRA. However, since that amount was not in your Traditional IRA at year-end and would therefore not be reflected in your FMV, it must be manually added when doing the calculation. Your IRA custodian will usually use the FMV on record as of year-end, instead of making the adjustments, resulting in the calculated amount being less than your true required minimum distribution (RMD) amount.

Ultimately, you are responsible for ensuring that your RMD calculation takes such adjustments into consideration. If a mistake is made, you would be responsible for paying the excess accumulation penalty. We highly recommend that you consult with a professional to help you develop the best course of action for your required minimum distributions (RMD).

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Tips for Improving Your Required Minimum Distribution (RMD) Process – Part 1 of 2

February 22, 2014/in Articles, Blog, Coverdell Savings Account, Health Savings Account, Health Savings Account, Resources, Roth IRA, Self-Directed IRA, SEP, SEP IRA, Simple IRA, Simple IRA, Solo 401K, Traditional IRA, Traditional IRA /by American IRA

If you are at least age 70½ this year, you may need to withdraw required minimum distributions (RMD) from your retirement account regardless as to whether it is a Self-Directed IRA or not. However, while you may have no control over the minimum amount that you must withdraw, you can implement strategies to help improve the efficiency with which your RMDs are handled.

Background

You must withdraw required minimum distribution (RMD) amounts from your retirement accounts (including any Self-Directed IRAs you have) every year, beginning with the year that you reach age 70½. An exception applies to qualified plans, such as pension and 401(k) plans, 403(b) plans and governmental 457(b) plans. Under this exception, your employer can allow you to defer starting your RMD past age 70½ until you retire. This exception can only be made for individuals who do not own more than five-percent of the business that sponsors the retirement plan.

Generally, your RMD for each year must be withdrawn by December 31. An exception applies for the year you reach age 70½ (or retire in the case of an employer sponsored retirement plan that allows you to defer your required minimum distribution (RMD) past age 70½ if you are still employed), which allows you to take your RMD as late as April 1 of the following year.

If you fail to withdraw your RMD by the deadline, you will owe the IRS an excess accumulation penalty of 50 percent of your RMD shortfall.

Note: The RMD rule does not apply to Roth IRA owners.

Tip 1: Aggregate When Suitable

If you have multiple Traditional IRAs, SEP IRAs and SIMPLE IRAs, you can take the calculated required minimum distribution (RMD) from each IRA, or you can aggregate the RMD for all of your IRAs and take the total from one or more IRAs. Aggregation of your RMDs can be useful if you have IRAs from which you do not want to make withdrawals. For instance, you may have an IRA with a specific amount that you want to leave to a certain beneficiary. In such cases, you would calculate the RMD amount for that IRA, but withdraw it from another Traditional IRA, SEP IRA or SIMPLE IRA.

This RMD aggregation rule can be done for 403(b) accounts as well. However, it cannot be done for qualified plans.

Caution: Regardless of whether you decide to aggregate your RMDs, you must calculate the amount for each IRA separately.

Tip 2: Defer RMD for Employer Plans

If you have assets in a qualified plan, and you are still employed by the plan sponsor at age 70½, check with them to determine if they will allow you to defer beginning your required minimum distribution (RMD) until you retire. If so, that would allow you the flexibility to choose whether or not you want to defer making withdrawals until you retire.

If you have assets in a 403(b) account or governmental 457(b) plan, you can defer your RMD past age 70½ until retirement.

Watch for our next blog: Tips for Improving Your RMD Process – Part 2 of 2 for more tips to help you improve your RMD process.

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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.

Open a Health Savings Account

August 7, 2011/in Health Savings Account, Health Savings Account, Open an Account /by American IRA

The EZ IRA Kit!

The EZ IRA Kit contains all the essential forms for opening a Health Savings Account

The Kit contains Detailed Instructions; a convenient checklist, the Account Application; and Fee schedule.

The forms you need:

American IRA Account Opening Kit

Please call us for the Health Savings Account Agreement & Disclosure

What is a High Deductible Health Plan (HDHP)?

The EZ IRA Kit!

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