Seven Simple Steps to IRA Success

So far we’ve defined what a self-directed retirement account is and determined if it’s right for you. So what’s next? American IRA has worked hard to make the account opening and investment process as streamlined as possible, and over the years it’s been trimmed down to seven simple steps.

Step 1- Open Your Self-Directed IRA

Step 1 begins with selecting which kind of account is right for you and opening your self-directed IRA account. I’ve listed multiple IRA options below:

  • Inherited
  • Traditional
  • Roth
  • SEP
  • SIMPLE
  • Solo 401(k)
  • Health Savings Account
  • Coverdell Education Account

After making your decision, you’ll fill out the appropriate application(s). Applications are available on American IRA’s website and will be signed electronically; otherwise, our staff will be happy to either e-mail or mail it to you (whichever is most convenient for you). At American IRA we pride ourselves in helping you through these processes, so don’t hesitate to call.

Step 2- Fund Your Account

In Step 2 we’ll focus on funding your account.

Here are the most common options:

  • Transfer funds from an existing IRA
  • A Direct Rollover from a 401(k)
  • Making a contribution

Keep in mind that you can make a contribution with a transfer or a rollover – it’s all up to you!

Step 3- Select an Investment

Step 3 is certainly one of the most crucial. At this point you’ll be choosing where you’d like to devote your IRA investment funds.

Here are some of the options available to you:

  • Real Estate
  • Precious Metals
  • Limited Liability Companies
  • Partnerships and Joint Ventures
  • Private Lending
  • Private Stock
  • Tax Liens

Feel free to contact us to discuss your options.

Step 4 – Negotiate Investment Terms

With a truly self-directed IRA you are in control! In this next step you’ll negotiate the terms of your investment based on your choices in Step 3 and work with your professionals to perform the necessary due diligence.

Step 5- Submit Buy Direction Letter

Step 5 involves submitting the proper buy direction letter to us. This letter outlines the terms, conditions, and professionals involved. We’ve discovered that working with you and your professionals simplifies the process. That’s why American IRA coordinates the transaction for you — we deal with you, the attorney, and any other professionals involved in the process. When the documents are ready you’ll receive the completed document for them to review, approve, and sign digitally, or if preferred you can print and return them by fax, mail, or email.

Step 6- Fund Your Investment

American IRA makes the process simple- in fact, American IRA will send funds to the appropriate party for you (per your written instructions) in order to purchase each asset. This asset will then be titled “American IRA FBO [Your Name] IRA”.

Next, you’ll simply set up your account for Internet access – you can log in at any time to view your account information and print statements. Our knowledgeable staff will assist you in this process.

Step 7- Account Management

Finally, all income and expenses must be deposited to and paid from your American IRA account. Keep in mind that your IRA is its own entity and as such, is responsible for collecting its own income and paying its own expenses. All uninvested cash remains FDIC insured at all times.

It’s that simple! You’ve now set up your very own self-directed IRA account and made an investment by following these 7 simple steps.

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