ASHEVILLE, NC / ACCESSWIRE / April 9, 2021 / What are the potential pitfalls that investors should avoid when funding a Self-Directed IRA? According to a recent post at American IRA, a Self-Directed IRA administration firm based in Asheville, NC, pitfalls include not putting enough research into understanding the various funding methods, or not taking action quickly enough to make sure that a rollover is complete, which can potentially create a taxable event with the IRS.
In the post, American IRA highlighted the different funding methods available for investors. For example, some investors simply choose to open an account and begin funding via direct contribution. This funding method is the most straight-forward and comes with straight-forward rules as it applies to contribution limits. For example, if a Self-Directed IRA investor opens a Self-Directed Roth IRA, they would be subject to the contribution limits of their age. But this arrangement also makes it easy to open an account and begin investing.
Other investors, the post notes, may have different investing needs. For example, it is possible to rollover an existing account into an IRA, which can potentially create a taxable event if investors aren't careful. The post details the kind of research that an investor should perform before taking on a rollover. It also details other methods of funding Self-Directed IRA accounts, such as transfers.
'It's important for investors to know their options when funding,' says Jim Hitt, CEO of American IRA. 'This post outlines the pitfalls that investors should avoid if they're going to do it effectively. Because when it comes to funding an IRA, there are certainly wrong ways to do it. And knowing these wrong ways can help investors avoid pitfalls that create a taxable event and incur penalties.'
The post expands upon these concepts in greater detail and explores the various funding methods available to certain investors-while noting that these funding methods can differ, depending on each investor's situation.
'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 $500 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.'
SOURCE: American IRA, LLC
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