Real Estate Investor's Comparison of IRA, ROTH IRA, and 401(k)

Solo(k) versus Self-Directed IRAThe Ultimate Tax Smackdown REMATCH 1

Begin with end in mind• RELATIONSHIPS• IDEAS• OPPORTUNITIES• NOT a sales pitch• NOT investment, legal, or tax advice 2

Today’s agenda• IRA investing• BASIC self-directed IRA investing (SDIRA)• SUPER-SIZED SDIRA = Solo(k) 3

Generalist vs Specialist Tax IRA Legal Financing PropertyManagement Accounting Brokerage Due Diligence 4

Why tax deferral is so important Year 12% with tax 12% but tax outside iRA deferred inside IRA 0 $ 1,000.00 $ 1,000.00 5 $ 1,622.47 $ 1,973.82 10 $ 2,428.41 $ 3,478.55 15 $ 3,634.70 $ 6,130.39 20 $ 5,440.20 $ 10,803.85 25 $ 8,142.57 $ 19,040.07 30 $ 11,242.90 $ 29,959.92 5

What’s the Difference? Typical IRA Self-Directed IRA• Stocks • Rental Property• Bonds • Notes• Mutual Funds • Private Stock• CD’s • LLC’s • Tax Liens • Foreign Property • Raw Land • Etc. 6

What Are The Limits? A Self-Directed IRA can invest in anything EXCEPT1. Life Insurance Policies2. Collectibles 1. Artworks 2. Coins 3. Collectible Cars 4. Antiques 5. Gems 6. Stamps 7. Rugs 7

What if your funds are with your current employer?Your plan will probably NOT allow you to self-direct Must wait until you leave the company To rollover retirement plan You can request an “in-service” transfer from your current plan administrator. 8

IRA ROTH 401(k) CashDeduction in current YES NO YES Maybe*year? *limits *limitsTax deferred growth? YES YES YES NOTax On withdrawals? YES NO MAYBE NOCreditor exempt? NO NO MAYBE NOHow is depreciation Offset UDFI / Offset UDFI / Lowers UBIT Sheltersused? UBIT UBIT No excess passive income and No excess No excess maybe activeContribution Limit? $5/6,000 $5/6000 $50,000/25% N/ATax-Free For Life NO $5/6000 $17,000 N/AContributions?Plan Loan? NO NO YES N/AUDFI? YES YES NO NOUBIT? YES YES YES NORetirement Age? 59.5 59.5 55 N/AEligibility? Everyone Everyone Certain Everyone Business Owners* 9

David Campbell - Founder Hassle-Free Cashflow Investing Former high school band director Self-made multi-millionaireReal estate investor / developer / broker / manager Financial educator / author / speaker Faculty Member: Investor Summit at Sea with Robert and Kim Kiyosakiwww.HasslefreeCashflowInvesting.comDavid@HassleFreeCashflowInvesting.com 10

Kaaren Hall, PresidentuDirect IRA Services, LLC(866) 538-3539KHall@uDirectIRA.com uDirect IRA Services, LLC 2522 Chambers Road, Ste 100 Tustin, CA 92780 11

Contact Us KEYSTONE CPA, INC. Maximizing Profits & Increasing Wealth www.KeystoneCPA.com (877) 975-0975 N ON: SEEAS www.KeystoneCPA.com 12 (877) 975-0975 Company Logo

DAVID CAMPBELL – professional investor / developer www.HasslefreeCashflowInvesting.com KAAREN HALL – president of uDirect IRA Services www.uDirectIRA.com AMANDA HAN, CPA – tax strategist www.KeystoneCPA.com 13

Real Estate Investor's Comparison of IRA, ROTH IRA, and 401(k)

by David Campbell

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