New Hampshire Self-Directed IRA
New Hampshire Overview
New Hampshire is among the most retirement-friendly tax jurisdictions in the country in many ways. It’s one of the safest states in the country, with a low crime rate nearly anywhere in the Granite State.
Health care in New Hampshire is excellent, and the health care Mecca of Boston is easily reachable by car from Southern New Hampshire. Spring and summer in New Hampshire are beautiful. Fall is utterly spectacular. Winter is, well, New England.
The seafood is excellent, as it is throughout New England. But the cost of living is high – again as it is throughout New England.
Golfers will not be able to golf year-round – the weather in the winter leaves a lot to be desired, though it makes for good skiing and snowmobiling in the White Mountains!
The best golf courses in New Hampshire include Baker Hill Golf Club in Newbury, the Golf Club of New England in Stratham, Lake Winnepesaukee Golf Club in New Durham, Lake Sunapee Country Club, New London, and Portsmouth Country Club in Greenland.
Here’s a little-known New Hampshire secret: It has some fantastic beaches. Ocean lovers will love Hampton Beach Park.
Why a New Hampshire Self-Directed IRA?
Stocks. Mutual funds. CDs. Bonds.
For years, you have heard that these are the types of investment vehicles through which to secure your retirement. The stock market tends to appreciate over the long haul, after all, and bonds are conservative and low on risk. Mutual funds have popped up in recent decades as one of the most popular investment vehicles as well, closely monitoring certain aspects of the stock market.
What most people do not know is that these are not the only investment types available for retirement.
In fact, if you choose self-direction, you will find that the IRS allows for all sorts of different types of investments in a retirement account. You can invest in gold and precious metals, real estate, private companies, and more. There are a few select limits on the sorts of investments you can make, but the good news is: you often have more legal options than you have limits.
For many people, a New Hampshire Self-Directed IRA means freedom, opportunity, and self-determination. It means not being satisfied that the “market” is the only market that exists. It does not mean you have to switch away all of your old investments. But if you want to invest in real estate or gold to help ensure a secure retirement, those options are indeed open…
And, like other IRA types, New Hampshire Self-Directed IRA come with all sorts of investment protections.
Understand Your New Hampshire Self-Directed IRA Plan Options
Let’s take a moment to consider the various retirement account types:
- Traditional Self-Directed IRA: A retirement account in which you can invest pre-tax or after-tax dollars, and in which your investments grow tax-deferred, meaning you will pay taxes on them once you begin withdrawing them. When you start making retirement withdrawals–defined as withdrawals after you turn 59.5 years old–the money is treated as income.
- Self-Directed Roth IRA: Similar to a Traditional IRA, except you make after-tax dollar contributions so you are paying taxes on the front end. This allows your investments to grow tax-free. After the account has been established for 5 years and after you turn 59.5, your withdrawals are tax and penalty-free.
- Traditional 401(k): A qualified plan that allows employees to make pre-tax elective deferrals. Business owners who want to self-direct can use these as well and allow employees to self-direct their accounts.
- Self-Directed SEP IRA: Simplified Employee Pension that allows employers to make contributions to the retirement of their employees. An employer can also contribute to their own retirement with a Self-Directed SEP IRA.
- Self-Directed SIMPLE IRA: Savings Incentive Match Plan for Employees. A “tax-favored” plan that small businesses and individuals can set up for their employees.
- Self-Directed Solo 401(k): A 401(k) plan that a self-employed individual can use for retirement that offers high contribution limits.
As noted throughout, these same accounts offer a high degree of self-direction if you want to direct your own accounts.
A Variety of Investments
One of the chief benefits of directing your own retirement account is that you get to choose your investments from a wide range of options:
- Real estate: Apartment buildings, commercial property, retail space, raw land, etc. If you want to earn an immediate income for your retirement account with your investments, rent can be one of the most powerful ways to ensure that. You can also use leverage in a New Hampshire Self-Directed Real Estate IRA when using non-recourse loans.
- Private IRA Lending: You can negotiate the terms, interest rate, and length of the loan, as well as other variables like the monthly payment amounts and whether the loan is secured or unsecured.
- Private companies: Public stocks are what most people think of as “investments,” but there are also private stocks to consider. There is a lot of opportunity for growth in private company stock, but also plenty of risk to consider.
- Tax liens: With a high rate of return, these investment types are ideal for self-directing investors with smaller accounts.
- Precious metals: Gold, silver, platinum, palladium. These metals are famous as a “hedge” against economic downturn, which is why many people turn to them as a way to avoid putting all of their eggs in the stock market basket.
- Single Member LLC: An investor can create an LLC to be owned by their New Hampshire Self-Directed IRA, managing it themselves. This gives a significant degree of protection; however, you will likely want to consult with a professional to learn how to do this properly.
What You Can’t Do with a New Hampshire Self-Directed IRA
As fun as it is to talk about the various options you can have with a self-directed retirement account, it should be noted that there are certain limits, as well. You cannot self-direct a retirement account to invest in life insurance, collectibles like art, gems/jewelry, coins, alcoholic beverages, and tangible personal property. As enticing as it might be to put that wine cellar under a Self-Directed IRA protection, it’s simply prohibited–so look for your protected retirement investments elsewhere.
Who You Cannot Do Business With
A disqualified person is anyone the Self-Directed IRA has decided is not “arm’s length” from the IRA. Your IRA cannot engage in any transactions with these individuals or you risk the tax-status of your IRA.
A Disqualified Person is:
- You
- Your spouse
- Any of your lineal ascendants or descendants (parents, children, grandchildren, and the spouses of children, grandchildren, etc. – including legally adopted children).
- Any investment providers or fiduciaries of the IRA.
- Any entity (a corporation, LLC, trust, etc.) where a disqualified person owns more than 50%.
- Any entity (like previously listed) where the IRA account holder is an officer, director, a 10% or more shareholder, or a highly compensated employee.
Getting Started with American IRA
Although we have thrown a lot of abbreviations and words at you, you should know that self-directing your retirement is not as complicated as it might sound. The steps are very simple:
- Open a New Hampshire Self-Directed IRA with American IRA. Make sure to put thought into the type of account you would like to open; review the options available to you and select the one that makes the most sense for your individual situation.
- Fund your account. This is where the options can throw people off. Let’s take a look at them quickly:
- Contribution: Simply putting money into the account throughout the year. This is what a lot of the funding will look like once the account is already opened.
- Conversion: Withdrawing part or all of the cash/assets from a Traditional IRA and putting them into a Roth IRA is called a conversion. Once the cash/assets are distributed, you have 60 days to put them in the Roth IRA account.
- Rollover: A tax-free distribution of cash/assets from one account to be put in another retirement account. You are permitted one rollover per year.
- Transfer: Transferring cash/assets directly from one retirement account to another retirement account. Because you do not take direct possession of the cash/assets, you are allowed unlimited transfers and there is no tax.
How it Works
1.) Open an American IRA Self-Directed IRA
- Select the type of account that you would like to open.
2.) Fund Your Account
- Move money into your account by transfer, rollover or contribution.
3.) Select an Investment
- Find an asset you want your IRA to purchase and submit an Investment Form. American IRA will work with you and your professionals for a smooth closing.
4.) Review the Instructions
- Visit the “How it Works” page on our website to review the instructions for the asset you want to purchase and submit the paperwork required for the investment you have chosen.
5.) Provide Payment Authorization
- Submit Payment Authorization Forms for expenses that pertain to the asset your IRA has purchased.
6.) Submit Deposit Coupons
- Deposit income generated from the asset your IRA purchased by submitting a Deposit Coupon along with the funds.
Tax and Financial Considerations for New Hampshire Self-Directed IRA Owners
The cost of living in New Hampshire is on the high side – about 14 percent greater than the average for the United States. The difference is largely from the cost of housing, which is about 39% higher than average, according to Sperling’s Best Places.
However, parts of New Hampshire are bargains compared to the average elsewhere in New England, and the generally friendly state tax environment takes much of the sting out of New Hampshire’s high prices.
As of April 2019, the median home price in New Hampshire was $272,900, compared to $219,700 elsewhere in the country.
State income taxes on New Hampshire Self-Directed IRA Income
New Hampshire does not impose an income tax on wages and salaries. Income from pensions and from retirement accounts such as 401(k)s and traditional Self-Directed IRAs is also exempt from income taxes at the state level. Social Security income is also tax-free in New Hampshire.
It’s not so friendly for investors who have most of their income coming from securities in taxable accounts: New Hampshire has a 5% tax on income from interest and dividends above $2,400 ($4,800 for married couples).
New Hampshire sales taxes
New Hampshire has no sales taxes. As such, it may be a good destination for lower income retirees who tend to consume most or all of their income. Other states have income taxes averaging more than 6.8%, so that’s a nice chunk of savings right there, especially for people who do a lot of consumption, such as dining out and purchasing non-essential items.
New Hampshire Self-Directed Real Estate IRAs
While New Hampshire has very friendly income tax and sales tax policies, they make up for it in property taxes. The Granite State has some of the highest property taxes in the United States, coming in at nearly 2.2%. The average New Hampshire homeowner pays over $5,000 per year in property taxes, which is more than two times the national average.
If you are single and your income is not greater than $20,000, or you are married and file a joint tax return and your income is not greater than $40,000, you may be eligible for a property tax rebate.
The high average property tax rate makes New Hampshire a more challenging environment for landlords and New Hampshire Self-Directed Real Estate IRA enthusiasts, though many are doing quite well. Just make sure your rental income will compensate you for the higher property tax. The lack of a state income tax on rental income will likely more than make up for the big property tax burden.
New Hampshire Estate and Inheritance Taxes
New Hampshire does not have a state inheritance or estate tax.
Other New Hampshire Taxes
As of 2019, There’s a gasoline tax of 42.23. cents per gallon on gasoline and 48.23 cents per gallon on diesel fuel.
New Hampshire has a cigarette tax of $1.78 cents per pack of 20.
Benefits of Retiring in New Hampshire
If you are interested in seeking retirement in New Hampshire, or if you simply want to think about it as a long-term option, you might consider a Self-Directed IRA. A New Hampshire Self-Directed IRA will allow you to handle plenty of different investments under your own control—all while enjoying the tax protections of retirement accounts.
Are you interested in retiring in New Hampshire? Want to learn more about how to take advantage of all of the retirement capabilities you have? Then it’s time to think about a Self-Directed IRA. Continue browsing this website to learn more about a New Hampshire Self-Directed IRA or contact us at 828-257-4949 to learn more about how you can secure a retirement for yourself.
About American IRA, LLC
American IRA, LLC is one of the leading third-party administrators for self-directed retirement accounts in the United States. The custodian New Vision Trust Company is a South Dakota regulated trust company. Founder and president Jim Hitt has been investing his own personal assets in Self-Directed IRAs, including Self-Directed Real Estate IRAs, for more than 35 years, and has helped thousands of others declare independence from Wall Street investment companies with their high fees and limited investment menus and become successful Self-Directed IRA investors.
American IRA has offices in Asheville and Charlotte, North Carolina, and Atlanta, GA, but we serve investors from all over the United States and even expats who want to realize the benefits of self-directed retirement investing techniques in New Hampshire Self-Directed IRA, Self-Directed Roth IRAs, Self-Directed SEP IRAs, Self-Directed SIMPLE IRAs and even Self-Directed CESAs and Self-Directed HSAs.
A New Hampshire Self-Directed IRA with American IRA, LLC can help you achieve greater diversification by making it easier to invest in alternative asset classes not commonly available from large investment companies. Self-Directed IRAs also allow you to take more direct control of your retirement assets, while minimizing exposure to needlessly high expense ratios, commissions, wrap fees, 12-b-1 fees and AUM fees commonly charged by Wall Street investment companies. Our much more efficient flat-fee, menu-based fee schedule frequently allows investors to save thousands in fees each year – particularly with larger accounts and buy-and-hold investors.
With a New Hampshire Self-Directed IRA from American IRA, LLC, you can quickly and easily invest in alternative asset classes like direct real estate ownership, tax liens and certificates, mortgage lending, precious metals, and much more.
To get started, click here to open an account, or call American IRA today at 866-7500-IRA(472).