ASHEVILLE, NC / ACCESSWIRE / July 27, 2020 / For many investors, the idea of using a Self-Directed IRA is focused on the possibility of accessing different asset classes within a retirement account. Investments like real estate, precious metals, tax liens, private companies, and private notes are valid retirement investments as long as they follow the rules. But is it possible for investors to use a brokerage account in a Self-Directed IRA, and if so, what are the individual quirks of this type of arrangement?
As a recent post at American IRA, a Self-Directed IRA administration firm, that answer was provided: yes, it is possible to use a brokerage account within a Self-Directed IRA. However, the post explained the important rules for using a brokerage account in this way. For example, it noted that the brokerage account and a Self-Directed IRA is not interchangeable with personal funds. In a taxable brokerage account, it is easy to transfer money from checking and make purchases. But contributing to a Self-Directed IRA has limits that depend on the type of account the investor is using.
Another key difference is the ability to trade “on margin.” “Investors do this by wagering on leveraged financial products,” the post notes. It is not allowed for the account to be at risk of having below a $0 balance, which means that more traditional investments like ETFs, stocks, and mutual funds are going to be the norm with Brokerage Account trading within a Self-Directed IRA.
The post also noted that when transferring or converting an account of this type, the investor will be expected to liquidate assets first. This can affect the overall planning of the portfolio.
“A brokerage account within a Self-Directed IRA can be a powerful tool, but the retirement benefits do come with certain limits,” said Jim Hitt, CEO of American IRA. “We wanted to show investors that it’s possible to navigate these rules and achieve a great deal of freedom in one’s retirement portfolio.”
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA.”
SOURCE: American IRA, LLC
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