How to Self-Direct Your Retirement Savings<br />uDirect IRA Services, LLC does not render tax, legal, accounting, investme...
Self-DirectionWhy Haven’t I Heard About This?<br />Few attorneys are knowledgeable <br />About self-directed plans<br />Fe...
What’s the Difference?<br />Typical IRA<br />Stocks<br />Bonds<br />Mutual Funds<br />CD’s<br />Self-Directed IRA<br />Ren...
What About Losses?<br />Losses<br />Cannot be written off taxes<br />Cannot be replaced in the retirement plan<br />
What Are The Limits?<br />A Self-Directed IRA can invest in anything EXCEPT<br />Life Insurance Policies<br />Collectibles...
What if your funds are with your current employer?<br />Your plan will probably NOT allow you to self-direct<br />Must wai...
Prohibited Transactions(IRS Publication 590)<br />Borrowing money from the IRA<br />Selling property to it.<br />Using it ...
Disqualified Person<br />Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal ...
Qualified Persons<br />Aunts & Uncles<br />Cousins<br />Brothers & Sisters<br />Unrelated friends<br />Nieces & Nephews<br />
Prohibited Transactions<br />Neither you nor any disqualified people may benefit from IRA <br />Cannot buy, sell or exchan...
Self-Directed IRA - Structure<br />You<br />Your IRA<br />TPA<br />Custodian<br />
Buying Real Estate With Your IRA<br />Pros<br />Capital gains are tax free<br />Positive cash flow is tax free <br />No ti...
Buying Real Estate With Your IRA<br />Cons<br />No tax advantages of owning real estate <br />No deduction for capital los...
Your IRA Can Take A Loan!<br />Loan must be <br />	non-recourse<br />Upon default, lender can seize subject property only<...
Non-Recourse Loans<br />Few lenders to choose from<br />Must be a portfolio loan<br />Cannot be sold on the secondary mark...
Personal Guarantees<br />Personal guarantees by the IRA owner not permitted<br />Can be personally guaranteed by a third p...
Buying Real Estate - The Process<br />Open a self-directed account<br />Shop for a property<br />Remember, it’s the IRA th...
What if the IRA depletes its reserves?<br />Make your yearly contribution<br />Liquidate other assets in the IRA<br />Tran...
Types Of Self-Directed Plans<br />
2010-Tax Increase Prevention and Reconciliation Act (TIPRA)<br />Beginning in 2010 and thereafter, you may CONVERT regardl...
How Do I Self-Direct?<br />Complete an application<br />Provide copy of driver’s license<br />Copy of statement<br />Fund ...
For More Information<br />Kaaren Hall, President<br />uDirect IRA Services, LLC<br />(866) 538-3539<br />KHall@uDirectIRA....
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uDirect IRA Services

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This presentation covers some of the basics of self-directed investing

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uDirect IRA Services

  1. 1. How to Self-Direct Your Retirement Savings<br />uDirect IRA Services, LLC does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.<br />
  2. 2. Self-DirectionWhy Haven’t I Heard About This?<br />Few attorneys are knowledgeable <br />About self-directed plans<br />Few CPAs are knowledgeable<br />About self-directed plans<br />IRS rules have allowed self-direction since IRAs were created in mid-1970s<br />
  3. 3. What’s the Difference?<br />Typical IRA<br />Stocks<br />Bonds<br />Mutual Funds<br />CD’s<br />Self-Directed IRA<br />Rental Property<br />Notes<br />Private Stock<br />LLC’s<br />Tax Liens<br />Foreign Property<br />Raw Land<br />Etc.<br />
  4. 4. What About Losses?<br />Losses<br />Cannot be written off taxes<br />Cannot be replaced in the retirement plan<br />
  5. 5. What Are The Limits?<br />A Self-Directed IRA can invest in anything EXCEPT<br />Life Insurance Policies<br />Collectibles<br />Artworks<br />Coins<br />Collectible Cars<br />Antiques<br />Gems<br />Stamps<br />Rugs<br />
  6. 6. What if your funds are with your current employer?<br />Your plan will probably NOT allow you to self-direct<br />Must wait until you leave the company<br />To rollover retirement plan<br />You can request an “in-service” transfer from your current plan administrator.<br />
  7. 7. Prohibited Transactions(IRS Publication 590)<br />Borrowing money from the IRA<br />Selling property to it.<br />Using it as security for a loan.<br />Buying property for personal use (present or future) with IRA funds.<br />
  8. 8. Disqualified Person<br />Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant). <br />
  9. 9. Qualified Persons<br />Aunts & Uncles<br />Cousins<br />Brothers & Sisters<br />Unrelated friends<br />Nieces & Nephews<br />
  10. 10. Prohibited Transactions<br />Neither you nor any disqualified people may benefit from IRA <br />Cannot buy, sell or exchange property between plan and <br />Self or <br />Disqualified people<br />Cannot provide goods, services or facilities<br />
  11. 11. Self-Directed IRA - Structure<br />You<br />Your IRA<br />TPA<br />Custodian<br />
  12. 12. Buying Real Estate With Your IRA<br />Pros<br />Capital gains are tax free<br />Positive cash flow is tax free <br />No time limit for holding property<br />IRA can borrow money<br />Leverage your investment<br />Potential to earn a larger rate of return on invested capital<br />
  13. 13. Buying Real Estate With Your IRA<br />Cons<br />No tax advantages of owning real estate <br />No deduction for capital losses<br />You are solely responsible for all gains or losses<br />You cannot replace losses<br />
  14. 14. Your IRA Can Take A Loan!<br />Loan must be <br /> non-recourse<br />Upon default, lender can seize subject property only<br />Upon default, lender cannot<br />Seize other IRA plan assets<br />Seize your personal assets<br />
  15. 15. Non-Recourse Loans<br />Few lenders to choose from<br />Must be a portfolio loan<br />Cannot be sold on the secondary market <br />Larger down payment required<br />40% to 45%<br />Cannot personally guarantee the loan<br />
  16. 16. Personal Guarantees<br />Personal guarantees by the IRA owner not permitted<br />Can be personally guaranteed by a third party<br />Must not be a “disqualified” person<br />Disqualified people are<br />Ascendants<br />Descendants<br />Spouse and self<br />And others<br />
  17. 17. Buying Real Estate - The Process<br />Open a self-directed account<br />Shop for a property<br />Remember, it’s the IRA that is the buyer<br />Custodian to sign “Offer to Purchase”<br />Submit a Buy Direction Letter for earnest money deposit<br />Funds wired to closing from your IRA<br />Fund & Record<br />Rents are made payable to your IRA<br />
  18. 18. What if the IRA depletes its reserves?<br />Make your yearly contribution<br />Liquidate other assets in the IRA<br />Transfer money from other retirement accounts<br />Bring on a partner<br />Not a disqualified person<br />IRA can get a loan<br />Sell the asset<br />
  19. 19. Types Of Self-Directed Plans<br />
  20. 20. 2010-Tax Increase Prevention and Reconciliation Act (TIPRA)<br />Beginning in 2010 and thereafter, you may CONVERT regardless of income<br />Convert your Traditional IRA to a Roth IRA <br />½ converted funds includable in 2011<br />½ converted funds includable in 2012<br />The income limits still apply in 2010 for CONTRIBUTIONS<br />Enjoy a huge potential windfall by taking advantage of the opportunity<br />
  21. 21. How Do I Self-Direct?<br />Complete an application<br />Provide copy of driver’s license<br />Copy of statement<br />Fund your account<br />Annual Contribution<br />Transfer<br />Rollover<br />Tell us what you want to invest in<br />
  22. 22. For More Information<br />Kaaren Hall, President<br />uDirect IRA Services, LLC<br />(866) 538-3539<br />KHall@uDirectIRA.com<br />uDirect IRA Services, LLC<br />2522 Chambers Road, Ste 100<br />Tustin, CA 92780<br />

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