What Is A Self Directed IRA
A Self Directed is a IRA account that you directly control and direct into investments of your choosing. Most IRA custodians that offer self directed IRA accounts greatly limit your investment options. This is because the custodians either earn fees from your investments or they are too conservative or not prepared to handle non-traditional investments.
American Estate & Trust is more of a truly self directed IRA custodian in that we do not place limits or constraints on your investment choices. Most of our clients are investing in real estate, private placements, oil & gas projects, condos, hard money lending, or their own LLC with checkbook control.
How Does A Self Directed IRA Work
Option 1: Minimum Control and Convenience – The Self Directed IRA Account
With this option you open up a self directed IRA account and then select an investment and direct us to purchase that investment. Generally speaking, the investment(s) chosen are non-traditional in nature (buying into a small business, hard money loan to unrelated party, etc.).
This structure places you into the investment, but you will be required to work through us as the custodian for each transaction. In some cases this works best if the investment activity and control required is minimal.
Option 2: Medium Control and Convenience – the iTrust
With this option, you open a Self Directed IRA account and then we create a separate IRA Trust that your IRA will invest in. This Trust can have a checking account setup. You, the IRA account owner, will be the investment manager for the iTrust and as such you will have administrative powers and control over the asset and/or checking account.
This account setup allows you to have the necessary powers and control over management of the IRA's assets. The Trust also will usually avoid any state filing fees or franchise tax fees that are associated with a LLC. This account setup is ideal for clients who need to hold real estate for investment purposes and may need to pay bills and expenses related to the property or any other asset. What you cannot do, without us, is buy and sell assets through the Trust. Each asset transaction (buy or sell) will require a signature from us or power of attorney.
American Estate & Trust is partnered with NAFEP, its sister company, in setting up of the iTrust.
To learn more about NAFEP, click here.
To view a online presentation of the iTrust click here
Option 3: Maximum Control and Convenience – The Self Directed IRA LLC (ICO)
With this option, you open an Self Directed IRA account and then we create a separate LLC that your IRA will invest in. This LLC can have a checking account setup. You, the IRA account owner, will be the manager for the LLC and as such you will have administrative powers and control over the asset and/or checking account.
This account setup allows you to have the necessary powers and control over management of the IRA's assets. The Trust also will usually avoid any state filing fees or franchise tax fees that are associated with a LLC. This account setup is ideal for clients who need to hold real estate for investment purposes and may need to pay bills and expenses related to the property or any other asset. As the manager of the LLC you can buy and sell assets at your discretion.
American Estate & Trust is partnered with NAFEP, its sister company, in setting up of the LLC (ICO).
To view and online presentation of the Self Directed IRA with LLC (ICO) click here
To learn more about NAFEP, click here.
How Do I Get Started
Setting up a Self Directed IRA account is as simple as filling out an application. If you need to go with a more advanced account, then there will be additional application information required to setup any of the required entities described above.
To setup a self directed IRA with American Estate & Trust or to add a IRA Trust (iTrust) or LLC (ICO) to your account, then contact us or call us at:
1-800-454-2645
The tax advantages for estate planning are tremendous. If you have read this far, you owe it to yourself and your family to open a self-directed account ASAP.
Posted by: Brett | February 16, 2009 at 04:06 PM