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Quest Trust Company›Blog›Individual Retirement Account

Tag: Individual Retirement Account

Three Key Investments You Can Make in Your Self-Directed IRA, But Not in Your 401(k)

Posted on December 14, 2015April 13, 2021 by Ingrid Chavez
Estimated reading time: 2 minutes

Despite the larger annual contribution limits that are available to participants of a 401(k) plan, there’s one essential aspect in which 401(k) plans fail to measure up to self-directed IRAs, and that’s in the area of investment options. Even if you consider participating in your employer’s plan in order to receive matching contributions from them, you’re likely to find yourself faced with a handful of investment options, likely in the form of mutual funds that come with above-market fees.

But even if you have the best 401(k) plan on the market, and have a wide range of options to choose from, you still aren’t likely to be able to invest in publicly traded stocks. Furthermore, there are going to be three key investment classes that certainly won’t be available in your employer’s plan.

Real Estate.

Real estate investments are one of the most popular types of investments for self-directed IRAs. These types of assets allow investors to purchase virtually any type of investment property, including single family homes, condominiums, multi-family units, commercial properties, farm land, industrial property, and even undeveloped properties.

With a self-directed IRA you have freedom in your investment goals and approach with real estate as well. You can rent the property in order to generate an income stream, invest for capital gains, invest for speculative purposes, or some combination of these considerations. Note that you cannot use any of these properties yourself, nor can any members of your family use the properties. Doing so could subject you to financial penalties and taxes.

There are additional financial burdens if you seek to borrow money with your self-directed IRA in order to purchase the property, so many investors choose to limit themselves to properties or property interests for which they can pay cash from their account.

Private Loans.

Finally, you can use your self-directed IRA to make private loans to third parties. These loans can take the form of mortgages to prospective homebuyers, or to businesses looking to expand their operations. The basic concept of making private loans is easy to grasp, but preparing the necessary documentation and making sure the transaction is properly structured is essential.

While you may only choose to devote a part of your overall retirement nest egg to these retirement classes, it can be a great advantage to have access through them through a self-directed IRA.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, A Self Directed Ira, Individual Retirement Account, Investment Types, Self Directed Ira Account, wealth accumulationLeave a comment

Searching for a New Self-Directed IRA Custodian? Consider the Following Factors

Posted on September 24, 2015December 6, 2018 by Ingrid Chavez
Estimated reading time: 3 minutes

As individuals search for new ways to get the most out of their retirement savings, financial services providers are engaging in increasingly competitive practices in order to bring in new business. In fact, you may notice that every year, particularly around tax time, you’re bombarded with promotions from traditional IRA custodians (such as banks and discount brokers) looking to offer financial incentives to entice you to open new accounts with them. Even in the self-directed IRA marketplace, you may find that you have multiple options for custodial services.

In addition, if you already have a self-directed IRA you still may find yourself in the market for a new custodian — perhaps your account has grown to a level where you want a higher level of service, or you’re simply looking for something new. Here are some factors to consider when you find yourself searching for a new self-directed IRA custodian.

Experience. As self-directed IRAs become more prevalent and better understood by retirement savers, a number of financial institutions have entered the fray to offer custodial services. Not all of these companies have the same degree of expertise, however. As you search for a new custodian for your self-directed IRA, look to those that can point to a proven track record of providing custodial services.

Self-Directed IRA Specialization. In fact, you may wish to limit your search to companies that specialize in self-directed IRA custodial services. If a custodian is not distracted (and isn’t tempted to try to upsell you) with an overly-broad range of financial services, you can be more confident that you are receiving the best degree of service. In addition, verify that any custodian you are considering offers a full range of self-directed IRA services, including the opportunity to provide precious metals safekeeping and real estate related transactional services.

Pricing. Of course, with specialization and expertise comes cost. Don’t be tempted to compare the prices of different custodians without being sure that you’re comparing similar levels of service. After all, the idea that “you get what you pay for” often holds true with respect the self-directed IRA custodial services.

Opportunity to Learn. It’s important to understand exactly what types of services you can expect from a self-directed IRA custodian. For example, as part of their custodial services, no self-directed IRA custodian should be providing you with specific investment advice with regards to your individual account. Still, there are other ways that you can get assistance with your account. Look for a custodian that provides learning resources and other materials, perhaps something akin to a knowledge base.

Chances are you’ve developed some skills as a consumer, and know how to comparison shop. Rather than buy the first product you see, you take the time to compare the various pluses and minuses of the various options you have, before choosing the product that provides you the overall best deal. You can apply these skills with great effect the next time you’re looking for a new self-directed IRA custodian.

Posted in How To Retire Well | Self Directed IRAsTagged 401, 401(k) Ira self Directed Matrix, A Self Directed Ira, checkbook llc, Financial Strength, Individual Retirement Account, Individual Retirement Accounts, Traditional Ira4 Comments

Is Now a Good Time to Invest in Real Estate With Your Self-Directed IRA?

Posted on September 17, 2015October 31, 2018 by Ingrid Chavez
Estimated reading time: 3 minutes

In most parts of the United States, the real estate market has recovered from its down period in 2007-2008. And in many cases, the growth has resumed at an impressive pace. This leads many retirement savers to ask themselves whether now is a good time to invest in real estate with their self-directed IRAs.

The short answer is that it’s almost always a good time to invest in real estate, or any other asset for that matter, depending on how and where you invest.

For example, if you look to invest in a part of the nation that might not be close to you, or even to invest abroad, or perhaps even to invest in a type of property that you hadn’t previously considered, then you’re likely to find a number of opportunities.

But the more important set of questions you need to ask yourself prior to making any real estate investment related more to your investment outlook, tolerance for risk, and other issues.

How Will You Manage the Property? One important factor in your investment decision-making process should be how you plan to manage any properties you purchase. For example, do you intend to manage them yourself, or will you hire a professional property manager?

Keep in mind that if you manage the property yourself, you won’t be able to receive any compensation or other value for your time (such compensation would be considered prohibited “self-dealing”). If you hire an outside property manager, you are permitted to pay that individual or company with funds from your self-directed IRA.

What’s Your Budget? While it’s possible to make real estate related investments in virtually any amount, you’ll find that you have many more options if you have a larger balance in your self-directed IRA. The costs and fees associated with real estate investments include not only the price of the property itself, but also any closing costs or fees associated with the purchase transaction. At a bare minimum, you’ll likely have to pay annual property taxes on the investment, as well as some degree of maintenance or upkeep expense. These funds must come from within your self-directed IRA, because paying with outside money can subject you to IRS penalties.

Local Rental Market Considerations? When doing an analysis on a particular real estate market, be sure to not only consider the asking prices of houses on the market, and comparable recent sales, but also the local rental market conditions. Perhaps the price for home sales has gone up a lot recently, but if the prevailing rents for those properties has increased even more, then you may have a favorable set of investment conditions (assuming that you plan to rent the property you purchase).

Finally, regardless of the type of real estate investment you make, be sure to have a plan for when and under what conditions you’ll sell the property. You don’t want to become emotionally attached to an investment, and you should always be willing to move on to a better investment opportunity when circumstances dictate.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, All Self Directed Ira, Individual Retirement Account, Individual Retirement Accounts, portfolio diversification, When your IRA is used to purchase an assetLeave a comment

Are You Diversifying Your Retirement Investments Across Your Various Accounts?

Posted on September 4, 2015December 6, 2018 by Ingrid Chavez
Estimated reading time: 3 minutes

When you hear the term “retirement account,” chances are you think primarily of IRAs and 401(k)s. And those two retirement savings and investment vehicles can and should certainly form the foundation of a solid retirement plan. Self-directed IRAs are a particularly powerful type of retirement savings account because you’re permitted to invest in the full range of legally permitted asset types, rather than being limited by traditional IRA custodians (such as banks and discount brokerages), or face the even more restricted with your investment choices in a 401(k).

But in a very real sense, virtually any investment or savings account can serve as a retirement account. Because you’re limited in how much money you can contribute each year to the tax-advantaged retirement accounts we mentioned above, you’re going to need to use those other account types if you’re able to save more than those specified amounts.

As you accumulate multiple accounts that you’re using to build a retirement nest egg, you’ll need to consider your investment diversification not on an account by account basis, but across all accounts considered together.

For example, let’s say you’ve determined that at present your optimal investment mix is something along the lines of 40% U.S. large cap stocks, 25% real estate investments, 25% debt instruments, and 10% cash. Your goal should not be to achieve that mix of investments within each IRA or other retirement account you have, but that you achieve it across the aggregate of your savings.

Let’s further assume that your primary retirement savings account is a self-directed IRA with a custodian such as Quest Trust Company, and that you also have a small 401(k) account at work, and a taxable investment account that’ve decided to use to help fund your retirement. Because you can’t use those smaller accounts to invest directly in real estate, and your options for choosing debt investments may be limited to publicly traded corporate and government bonds, the real estate and debt investments will likely be the primary focus of your self-directed IRA.

In fact, when you look at each of your accounts, they may appear to be woefully imbalanced and overly focused in a particular asset type. But taken as a whole, you can be confident that you’re on the right track in meeting your diversification goals.

Given the limitations of traditional IRAs and 401(k)s, it might be prudent to use those accounts primarily for the “plain vanilla” investments such as large cap publicly traded stocks, government bonds and the like. If you only have a self-directed IRA you can certainly use it to make such investments, but as your nest egg grows and you direct more retirement savings to different accounts, you can use this diversification technique to meet your targets.

As you save, be sure to to prioritize your contributions to those accounts for which you’ll receive the greatest benefit. Many investors choose to maintain both a traditional self-directed IRA as well as a Roth self-directed IRA in order to ensure they can make the best choice for their contributions each year.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, All Self Directed Ira, checkbook ira, Individual Retirement Account, Individual Retirement Accounts, Investment Types, RetirementLeave a comment

Why the Type of Self-Directed IRA You Have Can Impact Your Retirement Timeframe

Posted on September 2, 2015December 6, 2018 by Ingrid Chavez
Estimated reading time: 3 minutes

The type or types of retirement accounts you use can impact many different aspects of your overall retirement planning. Different accounts have different contributions, different features, different limitations, and different types of tax advantages. In fact, the type of self-directed IRA you choose can even impact your timeframe for retirement.

The two types of self-directed IRAs are traditional accounts and Roth accounts, and they differ in a few key respects. First, a traditional self-directed IRA is subject to the IRS rules on required minimum distributions. This means that once you reach age 70½, you’ll need to begin making withdrawals from your account.

The amount of the required minimum withdrawal each year is calculated based on the balance in your account and your age. The annual minimum withdrawal amount can change significantly from year to year, for example, if your account experiences particularly large investment gains or losses. Roth IRAs, on the other hand, are not subject to this set of rules.

Having to follow the rules on required minimum distributions could impact a person’s investment timeframe in that it forces a person to take taxable withdrawals from their traditional self-directed IRA regardless of their actual income needs, regardless of whether they desire to continue working, and irrespective of their other retirement assets.

The type of self-directed IRA you choose can also impact the income you’re able to draw from your account each year.

With a traditional self-directed IRA, you’ll be subject to income tax on the distributions you take from your account. This means that when you’re planning your strategy for when and how much you’ll withdraw from your account in order to fund your living expenses during retirement, you’ll need to do some additional calculations to account for your tax liability.

For example, let’s say your annual budget for all your expenses is $50,000 per year. If your self-directed IRA is set up as a traditional account, then taking a $50,000 distribution is likely to yield perhaps only $40,000 or less. So in order to wind up with $50,000 you might need to take a distribution of perhaps $60,000 or $65,000 or more, depending on your individual tax situation. Once you take these factors into account, you may determine that your traditional self-directed IRA won’t last you as long as you assumed it would just by looking at your account balance, particularly when your tax situation can change from year to year.

Distributions from a Roth self-directed IRA during retirement are not subject to income tax, so the amount you have in your account is the amount you can use for planning your distributions in whatever way you see fit.

It’s true that when you make contributions to a Roth self-directed IRA you can’t deduct those contributions for your income tax return. But choosing a Roth account over a traditional account can give you greater retirement planning flexibility going forward.

Posted in How To Retire Well | Self Directed IRAs, UncategorizedTagged 401(k) Ira self Directed Matrix, A Self Directed Ira, checkbook control ira, checkbook ira, convert IRA, Financial Strength, Individual Retirement Account, Individual Retirement Accounts, Ira Structure, Self Directed Ira AccountLeave a comment

Three Key Ways Marriage Can Impact Your Retirement Planning

Posted on August 28, 2015August 14, 2019 by Ingrid Chavez
Estimated reading time: 3 minutes

Getting married is one of the biggest steps two people can take in their lives. There are a number of major changes that both people will need to address — both personally as well as financially — as a result of getting married. For example, the new couple will need to decide whether and to what extent to intermingle their finances going forward, and how to deal with assets that each individual may bring into the marriage (such as real estate and investments).

Retirement planning can also be significantly impacted by marriage. The process of planning for your own retirement when you are single is vastly different than having to plan for two. Let’s take a look at three key ways that marriage can impact retirement planning.

  1. Maximizing Contributions.

Depending on your and your new spouse’s work status, being married can increase the maximum contributions you can collectively make to your self-directed IRAs. It works like this: normally an individual must have earned income at least as great as the contribution they want to make in any given tax year. But when a married couple files a joint tax return, then they effectively have access to each claim a portion of that joint income as a basis for making a contribution to an IRA. This is a great outcome if one spouse works, but the other doesn’t.

  1. Estate Planning Considerations.

Retirement planning and estate planning are often treated as wholly separate considerations, but in most cases they probably shouldn’t be. Think of it this way, if you’ve done a reasonably good job in saving for retirement, then the most valuable asset you have when you reach age 65 or 70 (apart from your home, perhaps) is likely to be your retirement nest egg.

As a result, the choices you make with your retirement savings — not just the investments you make and the asset types you hold within your account, but also the type of account you use in the first place — can make it easier (or harder) for you to reach your estate planning goals.

For example, a Roth self-directed IRA has certain advantages over a traditional account when it comes to passing your account to your spouse in the event you predecease them. While it’s possible to convert a traditional self-directed IRA into a Roth account, doing so can trigger current year tax liabilities, so there may be advantages for many young couples to simply start out within the Roth structure.

  1. Strategic Distributions.

Each new spouse will likely have their own Social Security benefits to manage when it comes time to retire. Even an individual who doesn’t earn enough income to receive benefits based on their own income can be eligible for a spousal benefit based on their spouse’s work record.

Since a person’s monthly Social Security benefit check can vary significantly, depending on whether they take benefits as early as possible (age 62), or delay taking their benefits until age 70. This leads to a number of different benefit maximization strategies, which will depend greatly on the couple’s particular situation and circumstances, in which one spouse begins taking social security, and the couple lives off that income (as well as income from one or both of their IRAs), while the other spouse delays taking Social Security in order to maximize their monthly benefit.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, A Self Directed Ira, checkbook control ira, Directed Ira, Financial Strength, Individual Retirement Account, Individual Retirement AccountsLeave a comment

Techniques for Making the Maximum Contributions to Your Self-Directed IRA

Posted on August 17, 2015April 13, 2021 by questadmin
Estimated reading time: 3 minutes

Appropriate and suitable investing is certainly one key to accumulating a large enough nest egg by the time you’re ready to retire. But at least as important as your investment approach is you making regular contributions to your account (as in, doing so every single year), and contributing as much as possible (that is, up to the permitted contribution limits for your retirement account).

Giving your account contributions the greatest amount of time to grow is something that you can’t make up in later years. Since your annual contributions to a self-directed IRA are capped, if you miss the opportunity to make a maximum contribution to your account in any given year, you’ll never be able to recapture that opportunity later.

For the 2021 tax year, the maximum annual contribution to a self-directed IRA is $6,000 (or $7,000 if you’re age 50 or over). Here are some techniques for making that maximum contribution to your account this year, as well as in all future years before retirement.

Use Your Tax Refund.

While the most financially prudent situation is to neither owe taxes nor be due a refund at the end of the year (since no refund means that you haven’t given the government an interest free loan of the excessive withholdings that were made from your paychecks), many people still like the “forced saving” element of getting a refund check after they file their returns.

Receiving a refund that may amount to several thousand dollars, or more, these taxpayers now have access to a lump sum of money that they perhaps wouldn’t have been able to accumulate otherwise. While many individual choose to use their refunds as an opportunity to splurge, or treat themselves to something nice, consider this: using your refund check to make some or all of your annual self-directed IRA contribution will free up your budget later and provide you with greater financial flexibility.

In fact, if you file early enough in the year, you may be able to receive back your refund check in plenty of time (that is, before tax filing deadline) in order to make some or all of your self-directed IRA contribution for that same tax year.

Incorporate Your Contributions into Your Monthly Budget.

Because the key to success in retirement saving is consistency, you can meet your annual contribution goal by taking steps toward that goal each and every month. Determine how much you need to contribute each month to make the maximum contribution, and work that amount into your budget.

Auto-Debit or Direct Deposit.

Even if you don’t have a formal budget set out for your family, you can still meet your monthly savings target by utilizing tools such as direct deposit (have an appropriate amount taken out of your paycheck each month and deposited directly into your self-directed IRA), or automating monthly transfers from your checking or savings account to your self-directed IRA.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, A Self Directed Ira, Individual Retirement Account, Retirement Funds, self directed ira, Self Directed Ira Account, Self Directed Ira Administrator, Self Directed Iras, SEP IRA, When your IRA is used to purchase an assetLeave a comment

Don’t Count on Working For the Rest of Your Life (and Why Your Self-Directed IRA is Therefore So Important)

Posted on August 6, 2015December 7, 2018 by questadmin
Estimated reading time: 3 minutes

We’re all aware of the fact that many (if not most) Americans haven’t saved enough money toward their retirements. One common response to the anticipated gap between anticipated living expenses during retirement and the amount a person has saved is for that person to delay the date upon which they anticipate being able to retire.

The reasoning is certainly clear; by working longer a person will be able to both save more money for retirement, and to delay the date upon which they’ll have to begin living off the funds in their nest egg. Unfortunately, the statistics indicate that this isn’t always possible.

A recent study by the Employee Benefit Research Institute found that while a full one third of workers planned to retire after the reached age 65, less than half of those individuals actually remained in the workforce that long. On the flip side of the coin, while less than 10% of workers indicated that they planned to retire before they reached age 60, approximately 35% of individuals had actually left the workforce by the time they turned 60.

While some of these individuals may simply have been fortunate enough to accumulate much more than they originally planned to, that same report makes clear what’s driving these numbers. Nearly half of all retirees indicated that they left the workforce earlier than anticipated in order to deal with health issues, either their own issues or those of a spouse or family member.

In addition, a significant number of individuals who left the workforce earlier than they planned did so because of an employer downsizing or closure, or because they no longer had the skills to remain employed in a changing marketplace.

In short, just because a person hopes or plans to stay in the workforce for a longer period of time in order to make up a shortfall in their retirement savings, that doesn’t mean it will be possible to do so.

As an alternative, a person could also make up this shortfall by adjusting their anticipated retirement lifestyle, thereby reducing their retirement expenses. While there is likely to be a minimum amount that an individual or couple will need to retire with reasonably stability and security, chances are this amount is less than what they were hoping to live off of.

If you’re not willing to downsize your retirement plan, then you’re only left with one real alternative, and that’s to maximize your rate of retirement savings every single year, and to begin doing so immediately. You might also investigate the advantages that a Roth self-directed IRA could provide you, in terms of the tax-free distributions you can take, as well as the fact that you could let a Roth account continue to grow even after you reach age 70, such that you’re not subject to the rules on required minimum distributions.

Contact Quest Trust Company to learn more about how you can open a self-directed IRA and strengthen your financial future.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, A Self Directed Ira, checkbook control ira, checkbook llc, Individual Retirement Account, Investment Goals, portfolio diversification, rollover iraLeave a comment

Circumstances Under Which You Might Consider Taking

Posted on August 3, 2015December 9, 2019 by questadmin
Estimated reading time: 3 minutes

Early Withdrawals from Your Self-Directed IRA

The IRA was created to give individuals a tax-advantaged option to save for their retirements, and exercise more control over such accounts than workers traditionally had with employer-sponsored pensions. In exchange for such benefits, however, the IRS requires that the accounts truly be for retirement purposes, so an individual who takes funds out of their account will be faced with a 10% penalty on the amount of the withdrawal, on top of whatever taxes might otherwise be due.

But there are a few situation in which the IRS will waive that 10% penalty, and these can potentially provide you with the opportunity to make financially sound early withdrawals from your self-directed IRA.

To Pay Down High-Interest Debt. This isn’t necessarily a good idea for everyone. But if having too much high interest debt is impacting other areas of your personal finances, then it could potentially be worth taking an early withdrawal from your self-directed IRA — although the amount of that withdrawal should be as small as is necessary to accomplish your goals.

For example, if you find that servicing your credit card debt is preventing you from being able to afford adequate health insurance, or that your credit score has dropped to the point where it’s become more expensive to take out car loans or get a new mortgage, then an early withdrawal from your self-directed IRA might make sense.

To Improve Your Career. You may already be aware that you can take penalty-free early distributions from your self-directed IRA to pay for so-called “qualified educational expenses.” These expenses include not only tuition, but also room, board, and other expenses that are a necessary part of attending a qualified educational institution (not just traditional colleges and universities, but also vocational schools and other organizations that are eligible to participate in federally guaranteed financial aid programs).

This exemption is normally pitched as a way to pay an IRA account owner to pay for their child’s educational expenses. Many financial experts would advise that it’s usually better not to sacrifice one’s retirement future to help their child pay for college, and that a better path forward would involve a greater contribution from the child, taking on student loans, and perhaps even considering less expensive educational options.

But you can also use this penalty-free exemption to improve your own education, and to boost your career in the process. Again, you should investigate other financial options (such as low-interest federally guaranteed student loans if you’re eligible) before taking a distribution from your retirement account.

To Buy a Home. If you’re a first-time homebuyer (which simply means that you haven’t owned a home at any point during the last two years), then you can take an early withdrawal of up to $10,000 to help you cover the purchase of that property. This type of early withdrawal can be a great financial choice if it’s the difference between you being able to purchase a suitable home versus continuing to rent.

Any action that reduces the size of your retirement nest egg should be done only with caution, and after considering all your alternatives. But in some circumstances taking an early withdrawal from your self-directed IRA might make good financial sense.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, checkbook llc, Individual Retirement Account, portfolio diversificationLeave a comment

Will This Be The First Year You’re Subject To Required Minimum Distributions On Your Self-Directed IRA?

Posted on June 15, 2015April 13, 2021 by questadmin
Estimated reading time: 3 minutes

While the U.S. government wants to encourage individuals to save for retirement by providing tax incentives for using the IRA structure, they don’t want to forego the tax revenue entirely. For example, you’ll potentially be able to take a tax deduction for contributions you make to a traditional self-directed IRA, and won’t have to pay taxes on any investment growth or gains that occur and remain within your account, but you will have to pay taxes when you make withdrawals from your account.

One important way that the IRS rules manage the balance between allowing tax breaks for retirement savings, but requiring that the account holder pays taxes at some point, is the set of rules on required minimum distributions (“RMDs”).

RMD Basics. Once a traditional IRA account owner reaches age 72, they must begin taking distributions from their account, and those distributions must meet certain minimum amounts that are calculated based on the account balance and the account holder’s age. The account holder must withdraw the calculated minimum amount from their account every year.

It’s important to note that because the required minimum distribution amounts are only minimums, the account holder is always free to take larger or more frequent distributions from their account.

It’s perhaps even more important to understand that the RMD amount will almost certainly change from year to year. Because the calculation is made on the basis of the value of your account at the end of the year, your investment performance over the year will change the amount upon which the amortization calculation operates.

Special Considerations for Some Investments. Your RMD obligations do not take into account the composition of your traditional self-directed IRA. If you happen to have an account that is comprised of illiquid investments, you’ll still need to take an appropriate distribution, even if you don’t have the free cash available to do so. You can do this by taking a distribution of illiquid investments that have a fair market value that’s at least as much as your RMD amount, or you can distribute the asset itself. This might be desirable if the asset is a vacation property or some other asset you’d like to make personal use of during retirement.

But taking a large distribution in one year won’t get you a credit against any future RMDs in future years.

Roth Self-Directed IRAs are Not Subject to RMD Rules. Note that we’ve only been talking about traditional self-directed IRAs with respect to the rules on required minimum distributions. That’s because the Roth account is not subject to the same rules.

Given the value that this feature has to many individuals, one common way to maximize retirement flexibility is to convert a traditional account to a Roth account. This triggers a tax bill in the year of conversion, but many account holders find the change to be worth the cost.

Posted in How To Retire Well | Self Directed IRAsTagged 401(k) Ira self Directed Matrix, All Self Directed Ira, checkbook control ira, Individual Retirement Account, Investment Goals, real estate, Self Directed Iras, self-directed IRALeave a comment

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    Our transition from Bancorp South Bank to Frost Bank

    We expect this transition to be smooth and easy, requiring almost no changes on the client end! There are no new systems to learn nor any account changes to make. The only update to be aware of is the new Incoming Funds Instructions. The old instructions for Bancorp South will no longer be applicable or […]

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  • Fast & Easy Investing with QTC Investment Hub!

    Fast & Easy Investing with QTC Investment Hub!

    With this feature, you can now submit investments directly through the client portal and track your investments in real time!

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  • It Pays to Have Friends!

    It Pays to Have Friends!

    Start raking in the rewards for the services you love. Refer a friend to Quest and receive a credit towards your account!   How to Begin Earning Credits: 1. Visit OUR REFERRAL PROGRAM PAGE, and enter your name, your friends email and their phone number in the referral box! 2. Your friend will then receive […]

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  • Virtual Classes + Networking

    Virtual Classes + Networking

    Check out our full class schedule here! Our weekly Quest webinars give you access to unlimited free education! Get the knowledge to help grow your retirement at one of our weekly classes on Tuesdays and Saturdays at 12PM CT! And don’t miss our Virtual Networking Happy Hours on the 4th Wednesday of every month – […]

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  • Quest Con: Forecasting 2023

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DISCLAIMER: Quest Trust Company does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.

© 2021 Quest Trust Company. View our Terms of Use.

© 2021 Quest Trust Company. View our Terms of Use.