All posts by GeraldMcCabe

Real Estate

Real Estate IRA and Its Tax Benefits

In 1974 the Individual Retirement Arrangement or IRA was introduced to serve as a scheme where American taxpayers could save for their retirement while taking advantage of tax benefits. This retirement account may be held together with other employer-based retirement plans or even social security. With the current state of the economy increasing their fears that they may end up poor during retirement, many have been encouraged to resort to investing in IRA.

Traditionally, retirement accounts, especially the employment based accounts, are managed by administrators who deposit the funds into mutual funds. In this way the administration of funds is simpler but leaves the account owners little choice on investment options. Investing in IRA accounts are more flexible, so much so that during the past years an increase in appreciation for real estate IRA, business enterprises, franchises, etc. as self directed IRA investments have been observed.

Present self directed IRA account owners have discovered that real estate IRA is one of the most profitable investments because it allows the purchase of real property inside the account while benefiting from its tax perks. It is a well known fact that real estate is one of the more tangible assets that one can hold aside from the guaranteed increase in its value over time given the right conditions.

The IRS mandates that in IRA real estate should be used solely to generate income for the account, in other words, only an investment tool. The IRS prohibits the use of the assets for the personal gain and benefit of the account owner or other disqualified individuals. What this means is that real estate IRA, which includes the purchase of tax liens, foreclosures, foreign and local real estate, should be used to derive income for the account from rentals or capital gains should the property be sold, and the like and that all its earnings be put back into the account until retirement. Conversely, all expenses required for the maintenance of the real property has to come from the account.

Real estate IRA provides the perfect opportunity for retirement account owners to watch their fund grow as a result of the income derived sans the imposition of the usual taxes on these types of transactions. In a traditional IRA account taxes are paid on qualified withdrawals from the account but are only classified as regular income. In the event of retirement the value of the account would have risen in leaps and bounds to include total contributions, all assets held by the account and the income derived from its past investments. The perks get even sweeter for the Roth version where, while the contributions form part of the taxable income, the withdrawals come out tax-free.

However, the IRS mandates all self directed IRA owners to appoint a custodian for the account. If the inclination is towards real estate IRA, an account owner must be sure to appoint a custodian who not only allows these investments but also have expertise in investments in real estate. Some custodians who are less proficient in real estate transactions may decline such investments simply because they might find these cumbersome.

Once a suitable account custodian for a real estate IRA is found, the owner can direct the custodian to purchase the assets for the account, either as sole investments or as a means of diversifying the account’s portfolio. All an account owner has to do is to wait for his retirement and to enjoy the fruits of his investments.

Gerald McCabe provides detailed information on Retirement Plans, 401K Retirement Plans, Self Directed IRA, articles about Real Estate IRA, Retirement Plan Services and more. For more info regarding Real Estate IRA, Visit http://myselfdirectedira.com or call us at 888-683-5228

Real Estate

Your IRA: Real Estate to Boost Income

The recent downturn in the economy has greatly impacted the retirement plans many account holders. Since the year 1980 many American taxpayers adopted the employer-based retirement accounts because it was easy to manage as mutual funds, its great income potential and its tax advantages. Traditionally fund administrators devoted these funds into the usual investment types such as stocks, bonds and the money market.

Since the crash of the stock market in 1986 and 2010 many of the retirement account owners have seriously considered shifting or doing rollovers to Individual Retirement Arrangements or IRAs. IRA was probably only viewed as a bonus on top of what they expect to receive from social security and their company pension plan when these employees were just starting off. The IRA has become the only way by which taxpayers can save for a retirement in the fashion they had envisioned because of these recent economic developments affecting both the government and business sectors.

An IRA allows taxpayers to have better control over the means by which he can achieve his retirement goals, either as a substitute for or as a supplement to his existing pension plan. Additionally, it increases the control of the account owner in investing his assets in order to optimize its potential, especially if he owned a self-directed account. Which, in the recent years, many account owners have seen this wisdom of investing in real estate because of its demonstrated stability. In IRA, real estate is an allowed asset that can be held by the account aside from the traditional assets like stocks and bonds.

In an IRA, real estate can afford the account owner to generate income and still enjoy tax privileges. This is what is called a real estate IRA. Self directed IRA accounts even provide more flexibility because an account owner can make investments in behalf of the account. In having a custodian who specializes in real estate as well as provides other services for your IRA, real estate investment can prove to be even more satisfying. In this manner, you can be rid of chore normally associated with the management of real estate such as rental collection and maintenance.

It would not matter whether you have a traditional IRA or a Roth IRA, real estate investments can help you generate income for your account with tax benefits. In the former, your tax benefit would be in the way of paying only regular income taxes on qualified withdrawals from your account aside from tax-free contributions. And come retirement time your account would have included all income generated by your asset investments. In a Roth IRA, real estate investments make continuous income until such time as you retire; then you are eligible for qualified withdrawals – tax-free. You are looking at a considerable amount of income here because income can either be derived by leasing out the property or by capital gains if you resell it.

You will be able to save for your retirement and make the money grow tax-free by investing your funds an IRA. Real estate affords you the stability to make you realize profits at a steadier pace than you would when investing in traditional investments. By having a self-directed IRA, investing in real estate is totally under your control and could turn out to be even more rewarding.

Gerald McCabe is a leading IRA Real Estate custodian that helps those nearing retirement learn how to invest in real estate notes with their IRA. Visit http://myselfdirectedira.com for the latest IRA Real Estate strategies or call us at 888-683-5228

Real Estate

IRA Real Estate is a Better Investment

There are numerous individuals who give out opinion on which assets are the best for investing. For them, the best retirement assets you can invest are bonds, stocks, and mutual funds. Only quite a few have considered tangible assets such as real estate and gold bullions to be the best retirement investments. Today, the usually talked retirement assets in the United States are bonds, stocks, and mutual funds that is why we need to introduce a better retirement investment for the IRA plans-real estate. As a matter of fact, you need to know something about IRA real estate investing and why it is better than the traditional assets.

With an IRA real estate, you are permitted to invest your retirement funds in your IRA account into real estate property. It is good to know that you can invest numerous retirement assets for your IRA account aside from the conventional assets. You will be able to increase the value of your IRA portfolio and generate a good amount of income returns as well by investing in an IRA real estate investment. The value of the IRA portfolio you have will increase and you can expect the same with the value of the real estate property you have in your IRA account. And, with the presence of a good real estate IRA/self directed IRA custodian, you should be able to enjoy your retirement more.

The Internal Revenue Service have installed several policies for real estate investing. The first rule that is very important is to never use the real estate that has been invested in an IRA for personal use. This rules has been extended by the IRS to your family members prevent self dealing. Your account will be disqualified by violating this rule and not just paying some heavy penalties. If you have a previous retirement account or let us say an employer’s retirement plan, you can transfer the funds you invested there to your IRA account through a rollover. Even your real estate property can be rolled over to your IRA. By performing a real estate rollover, you are able to avoid paying some taxes. Having tax benefits are among the reasons why some IRA account owners invest in a real estate property.

There are so many choices to choose from concerning the real estate investments. Commercial real estate, seashore real estate, and residential real estate are some of the properties that you can invest in your IRA account. You don’t have to look further because these are considered the best real estate investment for your IRA. You need to remember that there is a huge gap between an IRA real estate and a real estate market. The value of a real estate is vulnerable to any economic phenomena. Still, having it in an IRA account should make it invulnerable. Its value cannot be affected by any fluctuations in the economy which proves that it is a good investment.

Having an IRA real estate is a good way of producing money for the future. These days, it is considered to be way better than the conventional retirement investments because of the current status of the economy. The facts stated above will grant you success in your IRA account. Although an excellent decision would be to look for real estate experts and ask them their current stand with real estate property.

If you need more info on IRA Real Estate, My Real Estate IRA would be happy to help you. They’ll spend the time with you to structure the Self Directed IRA and help you with the best IRA Real Estate to fit your specific needs. Visit http://myrealestateira.com or call us at 888-683-5228

Real Estate

Income on Self-Directed Roth IRA

The whole idea of a self-directed Roth IRA is to save for your retirement. At this moment you can obtain gains from your IRA for real estate. In contrast, the self-directed IRA agrees to obtain income properties by way of your Roth IRA. That’s why you are capable of adjusting your Roth IRA to attain properties as source of income. Including a property intended for self-directed Roth IRA, you are therefore designed to buy property with pre-tax dollars. And you can choose to claim title or name to that property. You can put that property in your name, out of your Roth IRA, or similar on the name if your trust. The cash that has been positioned into the self-directed Roth IRA may well be taken out tax-free at retirement. With that being said, all your distributions from self-directed Roth IRA are tax-free when you retire. And if you purchase a rental property nowadays, you can definitely achieve the moment you are set to retire. You should be able to pull a nice flow of income out of the Roth IRA upon reaching your golden years. Together with, you will be in perfect order by working with the equity of the properties or instantly selling it. Moreover, a lot of people believe that there will be plenty of great opportunities in real estate within a couple of years. Hence, if this attracts you, you should need liquid assets to profit from self-directed Roth IRA. It is unrestricted for self-direction if your capital is in a 401k, IRA, Roth IRA, and any certified account. The Roth IRA and self-directed IRA on the other hand, have various advantages for its contributors. Members are allowed to invest in the opportunities that they want. You will have the capability to locate the right property for you whether it’s across the country or a home next door. You can increase your retirement plan from it at the same time generating endless wealth beyond your retirement plan.

It’s quite confusing when you can withdraw your Roth IRA. Upon hitting 59.9, is it after 5 years or is it anytime? But essentially you can extract cash at any time. You can accomplish an authorized withdrawal of profits later than five years.The five year phase starts with the year you earned your initial payment. So once the five years is done, your Roth IRA contributions are complete.There are several rules pertaining Roth IRA and a few basic qualifications. At any rate one of them must be met in order for earnings in withdrawal to not be taxed and to avoid penalty. The withdrawal should be done by Roth IRA owner. If the contributor reaches 59 ? years old, the withdrawal will then be complete. The Roth IRA withdrawal is made after they have been classified disabled. Similarly the entire withdrawals are made for the member of Roth IRA’s recipient or estate after their death. The withdrawal will be spent to pay the costs of a suitable first time home consumers. An essential law permits you to pay medical fees. On the other hand, only medical charges that are not refunded in another place are acceptable. Along with, whichever medical expenses that do not go beyond 7.5% of funder Roth IRA’s adjusted gross income. If a Roth IRA owner received the unemployment compensation for about 12 weeks, then such withdrawal can be used to recompense insurance premiums. The qualified dependents of the Roth IRA owner can use the withdrawal to pay for eligible higher education fees.

If you need more info on Self-Directed Roth IRA, AES (a leading real estate IRA custodian) would be happy to help you. They’ll spend the time with you to structure the Self Directed IRA or your Self-Directed Roth IRA to fit your specific needs. Visit http://myrealestateira.com or call us at 888-683-5228

Real Estate

IRA Real Estate Investments-Facts You Need to Know

Some things in the world may last while others not. Apparently, these things change and so do the retirement investments you are investing in your IRA. If you are in the field of investing, you will an idea that IRA is an excellent way of securing your future. Future retirees will generate huge amount of income with this retirement plan and that is agreed by experienced investors. You should look for a retirement asset that is not affected by the current status of the economy because everything is influenced by the fluctuations in the market. There are a handful of retirement assets that you utilize but if you are looking for something unique and special then I suggest that you invest in IRA real estate investments.

You are on the right track if you are going to use your IRA for real estate investment. Apparently, there is a fall in our economy today and this is the reason why a real estate property is considered to be a good investment. You can expect to generate more income return by this investment in your IRA. By renting it out, you are able to double and even triple the flow of cash in your IRA while doing some other things. The payment you will receive from the lessee, however, should be deposited directly to your IRA account in the form of a check. You will still be able to produce good income returns even during your retirement with the help of your IRA real estate investments.

Having an IRA account will let you invest in any of the IRA real estate investments. You may invest a real estate in popular or famous locations such as a tourist spot or in the middle of a city. By investing real estate in these locations, you will ensure an increase in your retirement funds. If you have decided to invest a real estate property but doesn’t have the funds, you can use the IRA funds that been invested in your account earlier. Since you are going to use the real estate property when you retire, it is very important to choose which property to purchase. It is still important to have the best real estate property to lure future buyers even if you have clearly decided that you are not going to use the property you bought.

Even if you have been successful in using your IRA for real estate investment, you still need to consider some things. One, you are not allowed to use the real estate property for personal use. Not even your close family members are allowed to use the property to avoid any self dealing. This means that you can only use the property if you are retired or have reached 59 ? years old. Secondly, to avoid penalties, you should follow all the rules that the IRS has mandated. Although IRA real estate investments are safe assets, your IRA is subjected for disqualification if you have committed unacceptable mistakes.

A real estate IRA rollover is also available for employees who wish to transfer their real estate and retirement funds to an IRA account. They should be reminded, however, that they should not be working with their previous employers. So you see, one good option for your future is the IRA real estate investments. Still, you will need the advices of financial experts to get a legal opinion about real estate investing.

Gerald McCabe provides detailed information on IRA Real Estate Investments, 401K Retirement Plans, Self Directed IRA, IRA Account, Retirement Plan Services and more. For more info regarding IRA Real Estate Investments, Visit http://myrealestateira.com or call us at 888-683-5228

Real Estate

The Importance of a Real Estate IRA/Self Directed IRA Custodian

Are you interested to take part in different type of investment other than traditional ones like stocks, bonds and mutual bonds? How about trying real estate IRA investing? Are you looking for a real estate IRA/self directed IRA custodian to help you around?

Every IRA account must comply with the rules of IRS. The real estate IRA/self directed IRA custodian can help you understand the rules more. They will not only provide you the rules of IRA real estate investment but they will also help you process the documents needed in this investment. Therefore they are the administrator of your retirement plan.

Even if you have full control over your investment portfolio, the real estate IRA/self directed IRA custodian will still help you out to process things easier. An investor cannot process alone his investments especially if he is new in the investment industry. If you have an experienced custodian beside you then the work load will be lessened.

There are two types of custodians that you need to know about because they have dissimilarities when it comes to customer- service they provide their clients. The custodian that do not provide advices to their clients is called passive custodians. What they can do for you is to ensure that your investment will comply with the rules of IRS. On the other hand, active custodians provide his clients advices as well as offers investment products.

The custodian and the investor are partners to gain success in an investment.

If you have made your mind that you will take part in real estate investment then you must make sure that your chosen real estate IRA/self directed IRA custodian is well experienced in the investment industry. If you want to manage your real estate investment in an orderly and timely manner then you must consider the steps below.

1. It is the realtor who writes the sale agreement but when a property is bought it is under the name of the chosen custodian.

2. Investment authorization forms is needed to be filled out, make sure that your IRA custodian is with you if you do so.

3. Present the paperwork to your IRA custodian for analysis.

4. For safe keeping purposes the custodian will be the one to hold on to the deeded property as well as other important documents.

Careful assessment is needed before you transact with a custodian because there are a lot of important things that you will be entrusting him or her. Make sure that they are well experienced when it comes to IRA real estate investment. It is also okay to run a background check just to make sure that they are not fake custodians.

Custodians are not that difficult to find but you just not lack judgment in dealing with one. The presence of a custodian is still important because they will help you avoid getting penalties. Your chosen custodian makes sure that you will not only comply with the rules of IRS but you will also not do any prohibited transactions such as “self dealing”. Make the right choice by investing in real estate to improve your investment returns with the help of a knowledgeable real estate IRA/self directed IRA custodian.

If you need more info on Real Estate IRA Self Directed, AES (a leading real estate IRA custodian) would be happy to help you. They’ll spend the time with you to structure the Self Directed IRA or your Real Estate IRA Self Directed to fit your specific needs. Visit http://myrealestateira.com or call us at 888-683-5228

Real Estate

Transactions Ruled out in IRA – Real Estate Investments

We must be aware of certain limitations in everything we do. Otherwise, there are possibilities that we suffer certain consequences like imprisonment or simply meeting consequences. Rules established by our government either small or large entities are the bases of punishments. To avoid the misuse of benefits that are being offered, rules and regulations are organized. This is also done in retirement accounts. One of the retirement plans that are widely considered is Individual Retirement Account or IRA. Real estate investments, mutual funds, bonds, and stocks and the like are widely acknowledged in this plan. Unlike other retirement plans, IRA offers investment options readily leading many people to take part in it.

Though rules and regulations could be confusing and complicated in IRA; real estate investments may offer wonderful benefits. Generally, early withdrawals or acquiring distribution before the retirement age (59 ? years) are subjected to the 10% tax penalty in all retirement plans including IRA. These penalties are not only applied to your IRA account, but also to other parties who are involved. The penalty for other parties reaches about 15% of the amount involved and could go as high as 115% if not corrected.Most investors commonly misinterpret these restricted transactions. Let us further discuss them to avoid any restricted transactions.

You IRA for real estate investment should not have anything to do with disqualified parties as mandated by the Internal Revenue Service or IRS. This way, it would minimize or completely avoid conflicts of interest. These disqualified persons include you, your spouse, your lineal descendants (and their spouses) and your lineal ascendants. All parties mentioned must not take part in your IRA for real estate investment especially in managing it. Additionally, your IRA or any administrators of such are also deemed disqualified entities. Business entities like corporations, partnerships and trusts that grant 50% of the real estate is also entities that are disqualified.

With your IRA, real estate investments are widely acknowledged but the purchase of collectible and life insurances are not. Both of these investments are not financial instruments since they are non-negotiable factors and do not provide income Furthermore, granting loans are not accepted in IRA. Real estate investments may at times encounter downfalls. You may use your IRA as leverage though borrowing money is not allowed. Instead of taking out loans, you may consider taking up a real estate IRA. Rollover this type of IRA to any other IRAs. The 10% tax penalty would be applied to your IRA account if this is not done within 60 days.

If you are familiar with the transactions that are accepted, it would absolutely guide you in your IRA for real estate investment. When you are starting your IRA, real estate investments or other types could be selected. No matter what investment you take, bear in mind that having basic information is not enough. You must learn more things about this so you would have an idea if any of your decisions are restricted or not. The best tip for you is to avoid any of the disqualified parties and focus on independence. Since there are a wide variety of investment opportunities, you need to be very careful in every transaction you make.

If you need more info on IRA Real Estate Investments, AES (a leading real estate IRA custodian) would be happy to help you. They’ll spend the time with you to structure the Self Directed IRA and help you with the best IRA Real Estate Investments to fit your specific needs. Visit http://myrealestateira.com or call us at 888-683-5228

Real Estate

Investing in Real Estate IRA: Rollover May Come in Handy

The rise interest rates resulting from the recent financial crisis has caused a lot banks to foreclosure real estate properties. Banks, anxious to liquidate these foreclosed assets, has caused a goldmine to be found in real estate. Those who were lucky enough to have the cash on hand bought property almost at bargain prices and can now sell them at almost double what they originally spent.

There is no way to go but up as far as real estate prices are concerned. This has been determined a long time ago. But it is good to keep in mind that real estate is a long term investment and that such price appreciation does not happen overnight. If what you need is retirement fund investments, you cannot go more long term than real estate. IRA rollover can be the solution because it offers a wider choice of investments and also the tax free nature of withdrawals.

To illustrate: if you now have a 401K, you are availing of tax benefits by way of tax exemptions on your contributions. The tax benefits you currently enjoy in a 401K include being taxed for distributions from your retirement fund only as regular income even if the fund includes all income generated by your investments. In contrast, qualified distributions from your IRA account when you retire is tax free. In addition, an IRA account allows you to invest in non-traditional assets.

If you care to make investments in real estate IRA rollover can provide you with the key to such endeavour. The rollover can be accomplished in 2 ways, to either make direct transfers of all your 401K assets into the IRA account or divest your account of stocks and the cash directly transferred into your IRA account. But if you intend to buy real estate, IRA rollover of the latter option would be the obvious choice. Just remember to make the rollover directly to another custodian because check transfers are subject to a 20% withholding penalty. Once this has been accomplished you can proceed with investing in real estate IRA, rollover funds readily available.

When investing in real estate IRA, rollover funds can even be more at your disposal if you make the transfer to a checkbook IRA. A checkbook IRA allows you to have complete control over your account, direct where investments are made, the assets to buy and so forth. However, the responsibility of ensuring that you are not in violation of any IRS rules regarding investments lies completely on your shoulders. Further, managing a retirement account’s assets coupled withthe activity of scouting for profitable investment options requires a lot of your time and patience. Therefore, a checkbook IRA account may not be suitable for everyone.

However, this fact cannot diminish the reality that real estate as an investment asset for retirement accounts provides income opportunities that make your secure retirement an eventuality. Within an IRA account, your assets grow tax free from real estate investments. Real estate IRA investing allows the generation of income from either from rentals or capital gains when you buy, improve and then sell the property. And when you make qualified withdrawals when you retire all of these come out tax free. This is surely a way that a comfortable and worry-free retirement can be ensured.

For more information about Real Estate IRA Rollover and other important business topics and for legal consultation, please visit our Real Estate IRA Rollover website at http://assetexchangestrategies.com or call us at 866.683.5228

Real Estate

Real estate IRA Self Directed IRA Alternative

Because of the fiasco caused by the Madoff case – including some unpublicized cases – many retirement account owners have shifted to self directed IRAs. This is considered as a safe investment strategy because it gives owner total control over the administration of the account. It should, however, be noted that the majority of investment advisors and brokers have produced good, if not exceptional results for their advisees. These fund advisors, brokers and administrators, being in the industry of investments, make it their business to be always kept abreast of profitable ventures. This dilemma is what faces owners of self directed IRA accounts because the accounts require a great deal of research and leg work.

Lately, however, in real estate IRA, self directed retirement accounts owners have found in its investment very promising prospects because of its non-traditional nature and flexibility. Real estate IRA investing allows the account owner to purchase for the account a wider variety of instruments such as tax liens, mortgages, personal loans, raw land, foreclosures, homes and rental properties. This is opposed to the traditional retirement fund investments in the traditional retirement accounts that are limited to stocks and bonds as well as the money market.

Also in real estate IRA, self directed retirement account owners are able to realize profits inside the fund with the benefit of untaxed income. For instance, an account owner purchases a foreclosed property with the account’s cash at a rock bottom prices. This is the time to do it because banks, at this point in time, are anxious to liquidate their foreclosed properties. After the sale has been consummated and the property, say a commercial building, is transferred into the account, the account owner can commence leasing out the commercial spaces. All of the rental income collected from the lease agreements go back into the account. Similarly, all expenses related to the maintenance as well as other incidental expenses are taken from the account. All of these transactions, while reported to the IRS, are untaxed simply because they are done in the retirement account.

Evidently, when investing in real estate IRA, self directed retirement accounts have the advantage of security of investments. Comparing it with stocks, bonds and the money market, real property is a tangible proof of your investment and has always established its capability to appreciate in value over time. However, real estate IRA investing is for long term because although price appreciation is almost always assured, such does not happen overnight. In contrast, the traditional retirement fund investments can double its value over a span of days and just as quickly fall. Real estate IRA is obviously the choice for retirement funds that have a many years to go before withdrawals are made.

When investing in real estate IRA, self directed retirement account holders need to remember to abide by the rules and regulations set forth by the IRS or they lose their tax benefit. The most important thing is that real property investments could not be used for personal consumption by the account owner or his immediate family, ascendants or descendants. The acquisition of real property in IRA is therefore for the sole purpose of generating income for the account. Violating these rules will make you liable for regular tax rates which can set your retirement back considerably.

For more information about Real Estate IRA Self Directed and other important business topics and for legal consultation, please visit our Real Estate IRA Self Directed website at http://assetexchangestrategies.com or call us at 866.683.5228