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Self Directed IRA FAQs

Top Self Directed IRA Frequently Asked Questions Now Answered

Investing is a team sport! Set up your due diligence investment team and invest time to learn the rules of investing with an IRA plan. If you are interested in starting a self directed IRA account, or you have specific inquiries about originating or rolling over a retirement account to Sunwest Trust, reach out and request assistance from one of our friendly, knowledge IRA specialists. Help others by sharing this content on your favorite social platform.

Top 5 Questions Answered Prior To Setting Up A Self Directed IRA Account

This Q & A is related to questions we have received through our “Ask The Expert” series. This content is solely offered for educational purposes and should NOT be construed as either financial or investment advice.

No, Sunwest Trust acts as a passive IRA custodian for your retirement account. We do not offer any investment or tax advice, nor do we sell any investment products. We simply facilitate your ability to invest in non-traditional assets.

The transaction that you are talking about appears to be simply the IRA selling the IRA asset. All of the proceeds from the sale of the IRA asset must go into the IRA that held that asset. It’s basically like any other investment account. Assets are purchased and sold through the IRA account. All the funds for the purchase must come solely from the IRA, and all funds from the sale must go back into the same IRA account. The IRA is making the purchase and the sale. Whether it can be rolled over to a Traditional IRA depends on what type of IRA it is. If the real estate was in a traditional IRA, the funds could be rolled over or transferred to another Traditional IRA. If the property was in a Roth IRA, it likely could NOT be rolled over to a traditional IRA. Of course, the purchaser of the IRA asset must not be directly or indirectly related to you, personally or professionally. The IRA Owner’s age does not affect this. There is no taxable event until the IRA Owner takes a distribution from the IRA. All you are doing here is changing real estate into cash within the IRA.

There are no IRS restrictions on how much can be rolled over to an IRA from a 401k. The 401k participant is free to rollover as much or as little as they want, and are free to have multiple rollovers from a 401k to an IRA.

Yes, Sunwest Trust is audited three times annually. We are audited by the New Mexico Financial Institutions Division, a company called Collin Fritz performs an annual private audit and we also have a local CPA firm who audits our firm annually.

Our account fees are very straightforward. We have a one-time setup fee of $50.00 and we charge $275.00 a year to maintain the account. The fee is a flat fee, regardless of how much money you have in the account or how many assets you hold in the IRA. Interested in learning about how and why IRA fees are charged for a self directed IRA account, visit the link?

All accounts are billed on the Anniversary date of the account, not by the calendar year. You will have 30 days to pay from the date that you receive the invoice. If you have not paid within 30 days, the fees will be deducted from your cash account.

We do not have any attorneys or tax professionals on staff, so we are unable to answer any tax or legal questions. We are happy to help you with any account questions or basic IRA questions that you may have. You may reach us by phone, email or by coming to the office.

We offer a wide variety of both written and multi-media materials on our website. Please visit our comprehensive Video Library, learn about setting up your IRA and Individual / Solo 401k. This content is for your information only and should not be construed as legal, tax or financial advice.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is set up correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is set up correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is set up correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is set up correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is set up correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is set up correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

As with many of the questions about IRA/LLCs, there is NOT any Code or Regulation citing this particular situation. You must rely on your legal counsel as to whether or not the LLC is setup correctly to allow additional capital contributions from the IRA to the LLC, AND that the IRA rules, regulations, and procedures also allow such a transaction. The IRA must do only that which the LLC allows AND the IRA rules allow.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

My issue is that I made small a contribution to my IRA to cover account fees. However, when I did my tax return, I found that because I had no qualified income, as the IRS defines it, it was an excess contribution and I would have to pay a 6% penalty annually on the contribution until it was removed.

I did not report the contribution because, at the time, I did not have the Form 5498 for the original tax year. My intention was to amend my tax return when I had the 5498. I do have that now and would like to move forward on this. When I initiated a discussion of this with my IRA Custodian and read the rules regarding the removal of this excess, I discovered that I had only until October 15th, to correct the excess and file the amended return or pay the penalty.

Other facts of my situation are that I live abroad (maybe I have more time to file the amended return), and that overall the value of my IRA has declined from the time I made the excess contribution until now, so I shouldn’t have to remove earnings or pay taxes or penalties in that regard.

The approach I suggested in order to keep things simple, was not to worry about the difference in IRA value, which would probably allow me to retain a little of the excess within the IRA, but to remove the entire contribution (only $225). I would like to amend my tax return to avoid the penalty (only $14), however, my IRA Custodian informed me that the 1099R for the withdrawal would not be issued until early next year for 2014. How can this be resolved most favorably for me?

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

It sounds like you are asking about taking a distribution from your Roth IRA and using it for a personal investment. There is no way to avoid a reportable distribution for that personal use purpose. Rollovers only apply when funds go from one IRA to another, or back to the same IRA AND within 60 days. All taxes and penalties would apply in your situation.

Since the FMV, not the cost, book value or other valuation, must be reported each year, FMVs must be obtained. If the ownership/partnership, etc., regardless of the type of investment, do not provide it, an expert in the field/industry could be one source. Non-affiliated agents selling/purchasing like-kind investments in the area could also provide a source for valuations. Whatever source used, must be independent and unrelated.