Freedom and Control in a Gold IRA

Patricia McCrystal

July 28, 2015

One of the championing benefits of a self-directed IRA is the freedom and power granted to clients to take the reigns of their retirement savings. A self-directed IRA allows clients to make investment choices that best serve their individual retirement goals and market expertise. A principal facet of this freedom is the ability to invest in alternative assets outside of the publicly traded securities market; including investing in a gold IRA or silver IRA.

When you invest in precious metals with a retirement account at New Direction, we take the freedom of a self-directed IRA a step further by allowing our clients to choose their own preferred qualified precious metals dealers. Many self-directed IRA administrators allow their clients to work with less than a handful of metals dealers and depositories. At New Direction, we’ve worked with more than 65 different dealers this year alone, all at the client’s direction. Additionally, clients who have preexisting relationships with dealers or depositories can request that New Direction work with those specific businesses to carry out transactions with their gold IRA.

New Direction clients can select between 15 depositories to store their precious metals investments; a number that keeps growing every year. The ability to shop a large selection of metals dealers and depositories allows our clients to choose a business that best suits their price range and service preferences for their gold IRA.

When metals dealers work with New Direction, they can access a specially designed portal that shows a list of their clients, a client’s progress within the transaction process, and a client’s transaction history. We can also tailor this portal to meet any dealer’s specific needs. This degree of specification benefits both dealers and New Direction clients alike, as it ensures thorough communication between the client, the IRA administrator, and the metals dealer.

An outstanding feature that sets New Direction apart is our in-house Precious Metals Asset Team (PMAT). This team is made up of gold IRA specialists who can guide our clients through the entire investment process and expertly answer questions regarding establishing, funding, and investing in precious metals IRAs. Available Monday through Friday, 8 am – 5 pm MST, this team ensures that clients, metals dealers, and depositories have a dedicated representative to contact about any questions or transaction requests. The PMAT team will also assist with gold IRA or silver IRA transfers between IRA accounts. To reach New Direction’s PMAT team, dial (877) 742-1270, ext.185.

Self-directed IRA account holders want flexibility and diversity in their retirement portfolios. New direction IRA offers both. Contact New Direction IRA today at 877-742-1270 (toll free), and take advantage of the freedom and control granted through a precious metals IRA with New Direction.

Prohibited Transactions Make Your IRA Vulnerable - Even to Creditors

Patricia McCrystal

July 27th, 2015

In a bankruptcy court ruling in Arkansas on May 25^th, 2015, a debtor was forced to forfeit his IRA’s tax-deferred status and give bankruptcy trustees access to the IRA account assets. This ruling marked an historic turn in legal proceedings for  IRA owners, as this was the first time a creditor successfully investigated the propriety of a debtor’s IRA transactions, and used evidence of a prohibited transaction to pierce the bankruptcy protection that IRA account assets typically enjoy.

Debtor Barry Kellerman and his wife Dana Kellerman created a partnership with Barry’s IRA account to purchase and develop land. The Kellermans owned 50% of the partnership, while Barry Kellerman’s IRA owned the other 50%. Instead of funding the purchase of the land with a proportionate split in cash between the Kellermans and the IRA account, Barry Kellerman directed his IRA to cover the entire purchase. The agreement required the Kellermans to match the amount funded by the IRA account after the land was sold at some future date.

An article on Wealth Management.com details the court ruling as follows:

“The Bankruptcy Court held that debtor Barry Kellerman and his wife Dana Kellerman used the income and assets of an IRA for their benefit, violating Internal Revenue Code Section 4975(c)(1)(D).  The court found that Barry alternatively dealt with the IRA income or assets as a fiduciary for his own interest, violating IRC Section 4975(c)(1)(E).  As a result, the IRA lost its tax-exempt status because of prohibited transactions engaged in by disqualified persons, and the Kellermans were unable to claim any tax-exempt interest” (June 1 2015).

What does this mean for my IRA?

The Kellerman court ruling is a tangible example of the consequences that can befall IRA account holders should  they fail to exercise due diligence with their self-directed IRA investment ventures. An IRA account administrator’s primary duty is to provide bookkeeping and custodial services for your investment decisions as the account holder. Some providers attempt to help clients identify potential prohibited transactions. However, an IRA provider cannot alert an account holder about a prohibited transaction if the IRA holder does not transparently communicate their investment intentions to their administrator.

Every self-directed IRA account provider works from the same set of IRS rules and codes; though these codes are not always clear. As such, IRA account holders may wish to call their provider or attorney and provide a detailed description of their investment ideas to make sure their proposed transactions are not prohibited. Before moving forward with investment decisions, it’s wise for self-directed IRA account holders to assess their own risk tolerance on possible prohibited transactions and risky investment choices.

Education about the rules and regulations of IRA account investments is a key aspect of making wise investment choices. New Direction IRA emphasizes an educational business model that empowers clients to confidently make knowledgeable assessments about potential investment opportunities. Call New Direction IRA today for more information about self-directed IRA investment parameters and proceedings.

Entrepreneurs and Self-Directed IRA Investors: A Dream Duo

Patricia McCrystal

July 14th, 2015

Every year, a higher number of investors decide to take the reigns of their IRA investments and rollover or convert their retirement funds into a self-directed IRA. The process is as simple as finding a self-directed IRA administrator that allows account holders to invest in alternative assets outside of the securities market. With a self-directed IRA, investors are granted nearly complete freedom and control over their IRA investments, as long as the assets fall within IRS guidelines (no life insurance or collectibles).

A self-directed IRA requires active oversight by the account holder, and therefore isn’t ideal for the passive or unengaged investor. But for the innovative entrepreneur, a self-directed IRA is an exciting opportunity to capitalize on individual market expertise and sniff out promising investment opportunities way ahead of the crowd. In this way, “entrepreneur” and “self-directed IRA investor” are nearly synonymous.

A self-directed IRA investor can use his or her own personal knowledge and market expertise to scope out investment opportunities, or team up with another entrepreneur who has insight about a promising investing venture in another field. The self-directed IRA account holder can use their IRA funds to either partner with another individual’s IRA account or another individual’s personal funds (as long as the partnering party is not a disqualified persons); or the IRA can bankroll an investment that the initial entrepreneur doesn’t have the funds to personally finance.

Successful entrepreneurs understand the importance of cultivating connections with market insiders who can provide tips about promising investment opportunities. If a business savvy friend knows about a restaurant in a great location that’s being sold by the owner, or if a mutual acquaintance’s solar energy enterprise is seeking private investors, a self-directed IRA investor can act as a critical connection to help other driven entrepreneurs realize their investment goals.

If you’re looking to open a business of your own, you can’t use your self-directed IRA funds to finance the venture, since you are disqualified from directly benefiting from the money in your IRA (until you’ve reached legal age of distribution for your account type). However, you can partner your personal funds with other another qualified person’s IRA account (or their personal funds) in order to financially support your personal entrepreneurial goals. Feel free to visit New Direction IRA.com to learn more about self-directed IRA investing, and as always, happy investing!