Sameer pimpalkhute ace capital group - land banking in california - secured retirement plan - process - investment funding from self directed ira account
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Sign-Up link for our seminars http://www.aceforsuccess.com/events/Sameer_Pimpalkhute/index.htm ACE Capital is a real estate investment company, and GreenDeedTM is a proven wealth building solution provided by ACE Capital Group. We are not a real estate broker or financial advisor. We are the principal who purchases and sells carefully selected California pre-developed real estate for the purpose of Land Banking. The buyers of our property receive fee simple title ownership (recorded grant deed), and title insurance we package as “GreenDeedTM”. Our business has evolved from the extremely successful personal investments of our founders. Since 1974 their enterprises have helped thousands of GreenDeedTM buyers build their personal wealth. Our proven three step formula has provided individuals and business owners with an innovative option to secure a better retirement or create a lasting legacy for their children and grandchildren. Video posted by Sameer Pimpalkhute
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Sameer pimpalkhute ace capital group - land banking in california - secured retirement plan - process - investment funding from self directed ira account
- 1. TRANSACTION COORDINATOR’S GUIDE: Individual Retirement Accounts (IRAs) Part 3 of 8
- 2. Individual Retirement Accounts ACE Capital Group does not advice customers on which type of IRA or IRA custodian to choose. They are to consult an IRA Custodian, financial planner or tax advisor to know more about which type of IRA and IRA Custodian is most suitable for their needs. Accounts Opening Funds Other Accounts
- 3. Accounts Opening Funds IRA’s • Retirement Funds • Earnings Tax Deferred • Withdrawals at Age 59 ½ • Qualified Custodians • “Traditional” Custodian Vanguard, Fidelity, Janus, etc Mutual funds, stocks, bonds, CD’s • Self-Directed Custodian IRA Services, Equity Trust, Provident, etc Real estate, LLC, stocks, bonds, Other Accounts
- 4. Accounts Opening Funds Other Accounts IRA Types Roth -After-tax contributions -Withdrawals usually tax-free Traditional -Before-tax contributions -Withdrawals usually taxed as income Simplified Employee Pension (SEP) -For self-employed or small businesses -Like a Traditional IRA with higher limits Savings Incentive Match Plan For Employees (SIMPLE) -Small businesses -Like a 401K with lower costs
- 5. Accounts Opening an Account IRA Application Photo ID Financial Statement Opening Funds Other Accounts
- 6. Accounts Opening Funds Other Accounts Opening an Account 1. Name 2. Address 5. Account Type 6. Signature 3. SSN 4. Birth Date
- 8. Accounts Opening Funds Other Accounts Contribution Personal Check/Cashier’s Check 1. Make the check payable to Custodian’s Name, FBO: Client’s Name, IRA (Account #). 2. Indicate on the check which year it is for and that is a contribution. 3. Complete a deposit form. Wire Transfer Contact the custodian for wiring instructions.
- 9. Accounts Opening Funds Other Accounts Transfer A transfer is the moving of funds from the client’s current custodian directly to his new custodian, without the funds ever going to the customer. Before starting a transfer, the client must liquidate his assets, so only the cash is to be transferred. The client must complete a transfer request form (available from his new custodian) and send the form to his new custodian, who will then forward it to the current custodian. Only IRA accounts can be transferred. If the client has a 401(k), 403(b), defined benefits plan or other non-IRA account, the client must request a rollover, not a transfer.
- 10. Accounts Opening Funds Other Accounts Rollover A rollover is when a check is issued by the current custodian and made payable either to the client or the client’s new custodian. The client must complete a rollover request form (available from his current custodian) and send the form to the current custodian. The client should tell his custodian, “I want a rollover check. Please do not withhold any taxes because I will be depositing the funds into a qualified custodian’s account.” The check can be made payable to the client or new custodian. If made payable to the client, the client should endorse the check to his new custodian by writing Custodian’s Name, FBO: Client’s Name, IRA (Account #) and signing the back of the check. If made payable to the custodian, make the check payable to Custodian’s Name, FBO: Client’s Name, IRA (Account #). Complete a deposit form and send the check and form to the new custodian. If the client has a 401(k), 403(b), defined benefits plan or other non-IRA account, the client must request a rollover, not a transfer.
- 11. Accounts Opening Funds Other Accounts Rollover 1. Customer requests a rollover check from old custodian Old Custodian Customer’s Request Customer New Custodian Rollover Rollover Check Check 2. Customer deposits rollover check into new custodian Transfer 1. Customer completes a transfer request form and sends it to the new custodian who forwards it to the old custodian Transfer Customer Transfer Request Form New Custodian 2. Old custodian forwards funds to new custodian Request Form Funds Old Custodian
- 12. Accounts Opening Transfer Rollover 1. Customer Information 2. Custodian Information 3. Account Type 4. Funds Being Transferred 5. Delivery Instruction Funds Other Accounts
- 13. Accounts Opening Investment Direction of Investment / Investment Authorization Vesting 1. Customer Information 2. Investment Information IRA Custodian, FBO: Client’s Name, IRA (Account #). 3. Payment Information Funds Other Accounts
- 14. Standard Agreement of Sale Exhibit A Other retirement accounts 401k 403b Coverall Savings Plan 529 Plan Exhibit B Exhibit C Important Disclosure
Editor's Notes
- Welcome to ACE Capital Group’s Transaction Coordinator’s Guide to Individual Retirement Accounts. After viewing this presentation, you will know what Individual Retirement Accounts are and how they can be used to purchase real estate. Let’s begin by looking at an outline of this presentation.
- ACE Capital Group does not advice customers on which type of IRA or IRA custodian to choose. They are to consult an IRA Custodian, financial planner or tax advisor to know more about which type of IRA and IRA Custodian is most suitable for their needs. The information presented in this presentation is to help the Transaction Coordinator understand the decisions the customer must make and what needs to be done to help the customer open the account and move funds.
- Individual Retirement Accounts are special retirement savings accounts, which permit the participant of the IRA to set aside money each year with earnings tax deferred until withdrawals are made at the age of 59 ½ or later. The funds must be held by a qualified custodian and the funds may be invested as the participant wishes although some custodians may limit the range of investments. Most people are familiar with IRA accounts at mutual fund companies and banks. These IRA custodians often limit the IRA investments into mutual funds, bonds, stocks and CD’s because these are the products that the custodian sells. The custodian both holds the funds and produces or sells the products the IRA funds are invested in. A self-directed IRA is an IRA where the participant directly chooses which investments the IRA will make. Any of the four types of IRA’s – Roth, Traditional, SEP and SIMPLE – can be self-directed. In the case of a self-directed IRA custodian, they will only hold the assets. The IRA participant will then choose from another company or seller to buy the assets they want in their IRA account. For example, the IRA participant can open an IRA at IRA Services and then buy real estate from ACE Capital.
- There are different types of IRA accounts with different tax benefits and eligibility requirements. Here is an overview of the four most common types of IRAs: Roth IRA - Contributions are made with after-tax funds or assets; all transactions within the IRA have no tax impact; and withdrawals at retirement are usually tax-free. Traditional IRA - Contributions are made with before-tax funds and they are often tax-deductible; all transactions within the IRA have no tax impact; and withdrawals at retirement are almost always taxed as income. SEP IRA - A Simplified Employee Pension (SEP) IRA plan allows a self-employed individual to make retirement plan contributions. Tax benefits are like a Traditional IRA. SIMPLE IRA - A Savings Incentive Match Plan For Employees (SIMPLE) IRA allows both employer and employee contributions, similar to a 401(k) plan, but with lower contribution limits and simpler and less costly administration.
- The most common IRA custodian ACE works with is IRA Services Trust Company. For IRA Services, they will require an account application and a copy of a photo ID at the minimum. To complete the IRA application, the top section will need to be fully completed. This includes the customer’s name, contact information, birth date and SSN. The customer will need to select the type of IRA account. Additional forms which may be completed are beneficiary designation, internet request form, transfer authorization form, additional deposit form, and copy of financial statement. For ETC, the account application and beneficiary form are on the same document. Transfer form requires a copy of the financial statement and a medallion signature. The customer can receive a medallion signature at a local bank. If there is any information or documents missing take note of this. How to open account? Mail documents to IRA Custodian.
- The most common IRA custodian ACE works with is IRA Services Trust Company. For IRA Services, they will require an account application and a copy of a photo ID at the minimum. To complete the IRA application, the top section will need to be fully completed. This includes the customer’s name, contact information, birth date and SSN. The customer will need to select the type of IRA account. Additional forms which may be completed are the beneficiary designation, internet request form, transfer authorization form, and additional deposit form. Copies of the IRA Services application are included with the sales template given to agents. For each custodian, be sure to read the application carefully.
- There are three methods for funding an IRA account: contribution, transfer, and rollover.
- Each year, the IRA participant may make a contribution to his IRAs. He may contribute to as many IRAs as he wishes to, but the total amount contributed to all his IRAs may not exceed that year’s annual limit set by the IRS. The contribution limit is specific to each IRA type. To make a contribution, the client may either use a personal check, cashier’s check or wire transfer to move funds into his account. Personal Check/Cashier’s Check 1. Make the check payable to Custodian’s Name, FBO: Client’s Name, IRA (Account #). “FBO” stands for “for the benefit of”. 2. Indicate on the check which year it is for and that is a contribution. For example, “2008 Contribution”. 3. Complete a deposit form. This will instruct the IRA custodian to deposit the funds into the account as a contribution. The deposit form can be found on the IRA custodian’s website. Wire Transfer Contact the custodian for wiring instructions.
- A transfer is the moving of funds from the client’s current custodian directly to his new custodian, without the funds ever going to the customer. Before starting a transfer, the client must liquidate his assets, so only the cash is to be transferred. The client must complete a transfer request form (available from his new custodian) and send the form to his new custodian, who will then forward it to the current custodian. Only IRA accounts can be transferred. If the client has a 401(k), 403(b), defined benefits plan or other non-IRA account, the client must request a rollover, not a transfer.
- A rollover is when a check is issued by the current custodian and made payable either to the client or the client’s new custodian. The client must complete a rollover request form (available from his current custodian) and send the form to the current custodian. The client should tell his custodian, “I want a rollover check. Please do not withhold any taxes because I will be depositing the funds into a qualified custodian’s account.” The check can be made payable to the client or new custodian. If made payable to the client, the client should endorse the check to his new custodian by writing Custodian’s Name, FBO: Client’s Name, IRA (Account #) and signing the back of the check. If made payable to the custodian, make the check payable to Custodian’s Name, FBO: Client’s Name, IRA (Account #). Complete a deposit form and send the check and form to the new custodian. If the client has a 401(k), 403(b), defined benefits plan or other non-IRA account, the client must request a rollover, not a transfer.
- To summarize: To do a rollover, the customer must first request a rollover check from his old custodian. Once he receives the rollover check, the customer deposits it into the new custodian. If the customer has a 401k, he must do a rollover. To do a transfer, the customer completes a transfer request form and sends it to the new custodian who then forwards it on to the old custodian. The old custodian upon receipt of the transfer request form will then send the funds to the new custodian. It is important to note that to complete the moving of retirement funds the customer will need to be closely involved in the process. Your Transaction Coordinator will assist you and the customer in completing all the necessary documents and contacting the custodians to insure the process is completed in a timely manner.
- The most common IRA custodian ACE works with is IRA Services. To complete the IRA Services Transfer Authorization form – the form the customer will need to initiate a transfer of funds from a current custodian into IRA Services – enter all the customer’s information, account information, funds to be transferred, and method of transfer. Customers are often confused by transfer available cash and transfer assets in kind. To transfer assets in kind means to transfer the assets as they currently are like stocks, mutual funds, etc. This will not work since IRA Services cannot hold mutual funds, so it best for the customer to liquidate his assets and then transfer the available cash.
- As the name “self directed” implies, the IRA participant needs to direct the IRA custodian on what he wants to buy. The investment form is often called a direction of investment or investment authorization. This specifies the type of investment, the cost, who to buy the investment from, and where to send the funds. The direction of investment form is almost the same for each custodian, but read the carefully because each custodian may require different documents. Vesting is very important. The IRA, not the IRA participant, will be holding title to the investment. If the IRA is investing directly into real estate, then the vesting should read IRA Custodian, FBO: Client’s Name, IRA (Account #).
- There are other types of tax deferred savings accounts. These accounts may not allow for investment into real estate or the limits may be too low to use for investing into real estate. If the customer chooses to use such an account, consult with the custodian to see what forms may be necessary to invest into real estate.