Self Directed Roth IRAs
The Roth IRA is generally considered to be the superior retirement account for most people. As long as you qualify to open a Roth IRA, your distributions are tax-free once you reach the required age and begin taking them. With the right advice and symmetry, most people meet the qualifications, even people who would seem to be excluded because of their net worth. The Roth IRA is not just a tool for the few.
The biggest decision to make once you know you qualify is deciding with whom to custody your account. Many traditional custodians place severe restrictions on investments you can make with your money, restricting it mostly to publicly traded securities. This is not a matter of law from the IRS, the Department of Labor, the ERISA laws, or the Taxpayer Relief Act. It is a matter of custodial management. Your legal investment options are wide open.
The difficulty in making non-securities investments with your Roth IRA due to custodial prejudice can be countered by opening a self-directed Roth IRA with a third party who partners with an appropriate custodian. For example, NAFEP works with Trust Administration Services Corporation to allow their clients complete checkbook control over their accounts. This means their clients can invest how they see fit rather than how they are allowed.
Maintaining Value by Avoiding Fees
The bulk of IRA custodians charge all sorts of fees to negotiate usiness through IRAs in their care. This includes set-up fees,
transaction fees, annual fees, and any other fees they can apply. A self-directed account can be nearly as fee-laden, too, depending on
where you set it up. Companies like the aforementioned NAFEP, however, simply charge a set-up fee for structuring your Roth IRA through an LLC of your own. This means you encounter no additional transaction fees no matter how many transactions you make.
Written By Scott Janko, The National Association of Financial and Estate Planning (NAFEP)
For more details on the Self Directed IRA -ICOSM Click Here.
BACK
|
