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Video Library

Sunwest Trust Video Library

1. How To Complete A Self Directed IRA Contribution Form

Use the contribution form for current and prior year contributions to your IRA.

Summary

Use the “IRA – Trust/Self-Directed Contribution Form” for current and prior year contributions to your IRA. You will need to fill in the following information in the form.

  1. Depositor Information
  2. Eligibility Determination
  3. Type of Contribution
  4. Deposit Information
  5. Contribution Limit for Your Regular or Spousal Contribution
    Note: Only applies if you are making a Traditional, or Roth, contribution.
  6. Age Instruction (helps determine whether or not you are eligible for the catch-up contribution).
  7. Certification – Signature & Date

Take Aways

Use the “IRA – Trust/Self-Directed Contribution Form” to make a current year or prior year contribution to your IRA.

For your contribution form you’ll need to fill in information such as your depositor information, eligibility, type of contribution, deposit information, and contribution limit.

Relevant Form Downloads

2. How To Complete A Self Directed IRA Transfer Form

Summary

The “Traditional IRA Transfer” form allows you to transfer from a SEP to traditional IRA or vice versa.

  1. Go to “Instruction & Authorization to Transfer Traditional IRA Funds to Another Traditional IRA” and fill out the PDF form.
  2. Indicate the type of special transfer (transfer from a SEP to Traditional or vice versa).
  3. Enter information for the current custodian (where your money is currently being held).
  4. Fill out the IRA account holder information.
You may transfer:
  • A specific amount or all your assets (provide description).
  • From multiple accounts or transfer from something that has a maturity date.
  • Assets such as private stock and real estate.

Take Aways

The “Traditional IRA Transfer” form allows you to transfer from a SEP to traditional IRA or vice versa.

Go to “Instruction & Authorization to Transfer Traditional IRA Funds to Another Traditional IRA” and fill out the PDF form.

You may transfer:
  • A specific amount or all your assets (provide description).
  • From multiple accounts or transfer from something that has a maturity date.
  • Assets such as private stock and real estate.
The “Traditional IRA Transfer” form allows you transfer from a SEP to traditional IRA or vice versa.

Relevant Form Downloads

3. How to fill out i401(k) form?

You can take a loan from your I401k.

Summary

Filling Out of Individual 401k or I401k Application

Individual 401k
Individual 401ks are designed exclusively for self-employed business owners with no full-time employees except the spouse. With I401ks you don’t need a custodian. You may act as your own trustee.

Employer Information
Provide company information. Enter companies EIN, unless you have a “sole proprietorship”, then put social security number.

Plan Trustee
Unlike an IRA with a 401k, you do not have to have a custodian. You may act as your own trustee.

Planned Loans You can take loans from your 401k record.

Take Aways

Individual 401k
Individual 401ks are designed exclusively for self-employed business owners with no full-time employees except the spouse.

With I401ks you don’t need a custodian. You may act as your own trustee.

In using I401ks you can choose to take a loan from your I401k.

Relevant Form Downloads

4. Completing Sunwest Trust Application Form

Summary

The first page of the document is the Sunwest Trust application to be filled out and returned. The rest of the document is the Plan Agreement for your filing.

The depositor information includes your personal information, the deposit amount, and tax year you want to make your contribution.

Elect your beneficiaries. If your beneficiary is not your spouse, read the last section and have your spouse sign where indicated.

Take Aways

  1. You will only need to fill out the first page of the document.
  2. Provide personal information, beneficiaries, deposit amount and tax year to make your contribution.
  3. If your beneficiary is not your spouse, read the last section and have your spouse sign where indicated.
The form portion is only one page and includes entering your deposit and beneficiary information.

Relevant Form Downloads

5. How To Complete A Direction of Investment

Use this form when buying or sell something out of your IRA account.

Summary

Filling Out an “IRA Self-Directed Instruction for Investment” Form
This form is used any time you want to buy or sell something out of your IRA account. You may also use this form any time you need Sunwest Trust Inc. to send money for miscellaneous things. Such as: rental property repairs, taxes and insurance on property, and homeowner association fees.

Form Instructions
  1. Indicate who you are and the type of IRA you have.
  2. Notify Sunwest Trust Inc. if you are selling something out of your IRA account.
  3. Record if you are purchasing an investment.

Take Aways

This form is used any time you want to buy or sell something out of your IRA account. Make sure you record how much money is being sent to purchase or to pay and how much money to send and where the money is to be sent.

Relevant Form Downloads

6. IRA LLC Misinformation - Single Member LLC - Checkbook Control

Summary

Though LLCs are not required to have a Self-Directed IRA, they do give accessibility and convenience. They permit you to use the bank of your choice, allow for checkbook control, and provide ready accessibility for investment purposes.

Funding Your LLC

  1. Set up an IRA account with a custodian.
  2. Provide the custodian with a copy of your LLCs operating agreement.
  3. Send them a transfer form to transfer money from your current custodian.
  4. Fund the LLC by requesting from your custodian a check made payable to your LLC.
  5. Set up a bank account by providing your LLC operating agreement, your “EIN” for LLC, and a check made payable to your LLC.

Taking Distributions from Your LLC

  1. Write a check from your LCC to your IRA custodian and send them a distribution form.
  2. IRA custodian issues a 1099 form to make it legal with the IRS.
  3. Custodian sends you a check.
For legal advice, consult your tax attorney or CPA. Call 1-800-642-7167 for customer service at Sunwest Trust.

Take Aways

  1. LLCs provide ready accessibility and convenience by giving checkbook control.
  2. Funding and taking distributions from your LLC requires that you work with an IRA custodian.
  3. For distributions you must write a check from your LLC to your custodian. The custodian will issue a 1099 form for legal reasons and will provide you with a check.
Main reason people start LLCs are for accessibility and convenience.

7. Precious Metals IRA Custodian

Summary

Investments in precious metals may occur in your self directed IRA. Collectibles are prohibited as investments in a self directed IRA. However, as of 1997 a tax payer relief act was passed through congress allowing many coins to be exempt from these restrictions.

Once you find what precious metals you want to invest in, you need to find a gold broker or a precious metals broker. Send your IRA custodian an investment letter directing him/her on how much to spend and where to spend the money. The precious metals will be held by your custodian in a safe repository which is audited a couple of times a year.

Take Aways

  1. Investments in precious metals may occur in your self directed IRA.
  2. Even though collectibles are prohibited from a directed IRA, many coins have been deemed acceptable for self directed IRA investments.
  3. Work with a gold broker or precious metal broker and send your IRA custodian an investment letter directing him/her on how much to spend on the precious metal(s) and where to spend it.
Various coins once deemed a collectible (prohibited investments) are now allowable investments in self directed IRAs.

8. Learn the Self Employed 401k Rules

Self-Employed 401k includes higher contribution limits, loan provisions, and being your own trustee.

Summary

“Self-Employed 401ks" are also know as “Individual 401ks" or “Solo 401ks".

To qualify for a Self Employed 401k

  1. Must be a self-employed business owner.
  2. No full-time employees other than an owner’s spouse is permitted.
  3. If company is owned by several people then each owner can participate in the 401k plan.

Benefits of Self Employed 401k

  1. Higher contribution limits than with regular IRS or some other retirement plans.
  2. Roth deferrals enable you to make free taxable post tax contributions.
  3. Loan provision allows you or any of the other members to borrow money from their 401k up to 50% or $50,000, whichever is less. Loan must be paid off in 5 years with interest.
  4. You can be your own trustee. This gives you checkbook control so you can write checks out of your 401k. You can invest in traditional assets such as CDs, mutual funds, stocks, and bonds. You can invest in non-traditional assets such as real-estate or precious metals.
  5. Offers cost effective maintenance because you are acting as your own trustee.

Take Aways

  1. To qualify for a Self-Employed 401k you must be a self employed business owner with no full-time employees other than possibly your spouse.
  2. With a Self Employed 401k, there are higher contributions limits and loan provisions that can be taken from your 401k account.
  3. You can be your own trustee. This allows you to write checks from your 401k account for traditional and non-traditional investments.

9. What Are IRA Prohibited Transactions? Tips on How to Avoid them.

Summary

Self Directed IRA prohibited transactions may involve self dealing, working with disqualified persons, and/or conducting activities or investments for a short term monetary benefit rather than monetary benefit for retirement.

Disqualified persons are: yourself, your spouse, and any lineal family members (such as grandchildren, children, parents, grandparents, etc.).

The Internal Revenue Service code section 4975 explains in detail what prohibited transactions are and who disqualified parties are.

Talk to a CPA or tax professional if you have questions regarding prohibited transactions.

Take Aways

  1. In regards to Self Directed IRAs, prohibited transactions usually deal with activities to produce a short term gain rather than monetary gains for retirement.
  2. Disqualified persons are: yourself, your spouse, and any lineal family members
  3. The Internal Revenue Service code section 4975 explains in detail what prohibited transactions are.
Prohibited transactions with disqualified people focus on obtaining gains for the short term rather than establishing the gains for retirement.

10. Why A Self Directed IRA May Be Good For You

Summary

Traditional retirement accounts can be risky, since your investments are typically limited to stocks, mutual funds, or bonds. A Self Directed IRA account is set up with a self directed custodian and entitles you to make your own choices as to where and how your funds will be invested.

If you are willing and able to invest on your own, a self directed IRA can mean substantial growth to your retirement funds without the interference of a traditional IRA custodian. The gains accrued to your IRA account receive the same tax advantages as a traditional IRA.

You can’t invest your IRA funds in collectibles, life insurance policies, or with a disqualified party.

Take Aways

  1. A Self Directed IRA account entitles you to make your own choices as to where and how your funds will be invested.
  2. The gains accrued from a Self Directed IRA account receive the same tax advantages as a traditional IRA.
  3. You can’t invest your Self Directed IRA funds in collectibles, life insurance policies, or with a disqualified party.
A self directed IRA means expanded investment options.

11. All About Self Directed IRAs

Self Directed IRAs allow you to expand your investments to Limited Liability Companies, Real Estate, Trust Deeds, Mortgages, Promissory Notes, Private Placements,Tax Liens, and Precious Metals.

Summary

Most financial institutions allow you to invest only in the traditional assets: stocks, bonds, and mutual funds. At Sunwest Trust we allow you to invest in anything that is not specifically prohibited by the IRS. Life insurance, collectibles, and transactions with disqualified parties are however prohibited. A disqualified party is yourself or a lineal family member.

Self Directed IRAs do allow you to invest in:

  1. Limited Liability Companies
  2. Real Estate
  3. Trust Deeds
  4. Mortgages
  5. Promissory Notes
  6. Private Placements
  7. Tax Liens
  8. Precious Metals
We also offer Roth IRAs. The contributions to a Roth IRA are not tax deductible.

Take Aways

Self Directed IRAs allow you to expand your investments to Limited Liability Companies, Real Estate, Trust Deeds, Mortgages, Promissory Notes, Private Placements,Tax Liens, and Precious Metals.

Life insurance, collectibles, and transactions with disqualified parties are prohibited. A disqualified party is yourself or a lineal family member.

12. Gold IRA Rollover - Learn Why A Gold IRA Rollover Might be Right For You

Summary

With the US dollar deflating at an alarming rate, many economists from across the spectrum now think that gold is the ideal hedge against an up and coming second financial crisis — most likely to affect the US and the world economy.

Over the past decade the value of gold has increased by over 300%.

Gold may be your answer to create the stability and diversification for your IRA retirement portfolio needs.

Sunwest Trust, in cooperation with Republic Monetary Exchange, is providing their customers the ability to set up a self directed IRA which would allow their investors to purchase gold.

Take Aways

With the US dollar deflating at an alarming rate, many economists from across the spectrum now think that gold is the ideal hedge against an up and coming second financial crisis — most likely to affect the US and the world economy.

Gold may be your answer to create the stability and diversification for your IRA retirement portfolio needs.

Sunwest Trust, in cooperation with Republic Monetary Exchange, is providing their customers the ability to set up a self directed IRA which would allow their investors to purchase gold.
Over the past decade the value of gold has increased by over 300%.

13. What is an Individual 401k?

Summary

An Individual 401k or I401k has many benefits a typical corporate 401k has, such as salary deferral and profit sharing.

An I401k is specifically designed for small business owners with typically no full-time employees except a spouse.

The contribution limits for the Individual 401k are much higher than a typical traditional IRA or a Roth IRA.

You can take loans with the Individual 401k plan. You can’t do that with an IRA.

Unlike an IRA you don’t need a custodian or a third party trustee. You may act as your own trustee and administer the plan yourself.

Take Aways

An I401k is specifically designed for small business owners with typically no full-time employees except a spouse.

The contribution limits for the Individual 401k are much higher than a typical traditional IRA or a Roth IRA.

You may act as your own trustee and administer the plan yourself.
An I401k is specifically designed for small business owners.

14. Tips for Naming a Beneficiary for your IRA

The IRA money goes to the primary beneficiary upon your death.

Summary

Primary Beneficiary
The primary beneficiary is the one whom the IRA money would go to upon your death.

Contingent Beneficiary
If the primary beneficiary is deceased upon your death, then IRA monies would go to the contingent beneficiary.

Non-Spouse Beneficiary Options
  • They can take the money as a lump sum.
  • They can take it over 5 years.
  • They can take it over their life time, based on the IRS’s life expectancy table.
Spouse Beneficiary Options
  • Spouse can treat the IRA as his/her own (check for exceptions).
  • Your spouse can be listed as the primary beneficiary and a trust can be named as a contingent beneficiary.
Two Primary Beneficiaries
If you have two primary beneficiaries upon your death and only one of the beneficiaries is alive you may want 100% of the monies to go to the living beneficiary or 50% go to the living beneficiary and 50% go to the deceased beneficiaries heirs.

Take Aways

The primary beneficiary is the one whom the IRA money would go to upon your death.

If the primary beneficiary is deceased upon your death, then IRA monies would go to the contingent beneficiary.

Your spouse can be listed as the primary beneficiary and a trust can be named as a contingent beneficiary.

15. Moving IRA from One Custodian to Another Custodian

Summary

Moving IRA from one Custodian to another Custodian
The fastest way to move your IRA to another custodian is to perform a transfer from Custodian A to Custodian B.

Transfer
In a transfer, monies and/or assets are moved directly from Custodian A to Custodian B. No reporting to the IRS is required.

Rollover
In a rollover, you request money from Custodian A and they send the money directly to you.

You can only do a Rollover once every twelve months. Rollovers need to be reported to the IRS.

Take Aways

Transfers are the quickest way to move money and/or assets directly from Custodian A to Custodian B.

In a transfer, monies and/or assets are moved directly from Custodian A to Custodian B.

In a rollover, you request money from Custodian A and they send the money directly to you.
Transfers are the quickest way to move money and/or assets directly from Custodian A to Custodian B.

16. Self Directed IRA Investments

It’s important to diversify i.e. investing in local businesses and real estate.

Summary

Where to Turn in Face of Stock Market Volatility and Wall Street National Economic Down Turn?
  1. Some turn to Main Street.
  2. Individuals often find investing their IRA in markets other than Wall Street both controllable and safe.
  3. Many IRA holders place a portion of their retirement account in their local economy like real estate or the start of a local business.
With the national economy down, it’s important not to keep all your eggs in the same basket.

Clients at Sunwest Trust have invested in local businesses, real estate, or loans to people in their own town.

Take Aways

With the national economy down, it’s important not to keep all your eggs in the same basket.

Many IRA holders place a portion of their retirement account in their local economy like real estate or the start of a local business.

Clients at Sunwest Trust have invested in local businesses, real estate, or loans to people in their own town.

17. Commonly Asked Questions When Setting Up A Self Directed IRA

Summary

A self directed IRA allows you to research and choose your investments. Your investment choices could very well exceed those of your local stockbroker.

An IRA custodian is a company that qualifies based upon IRS code requirements to hold the assets of your IRA.

Custodians can limit what you’re allowed to invest in. Sunwest Trust Inc. doesn’t sell any investments, but allows you as the IRA owner to decide what to invest in.

The IRS allows each custodian the opportunity to decide what types of investments to offer. Banks and brokerage houses only offer the product that they sell, like CDs and mutual funds.

If you would like your IRA held by the same company that administers it, contact Sunwest Trust Inc.

Take Aways

A self directed IRA allows you to research and choose your investments.

An IRA qualified custodian is a company that hold the assets of your IRA.

Custodians can limit what you’re allowed to invest in. Sunwest Trust Inc. doesn’t sell any investments, but allows you as the IRA owner to decide what to invest in.
Self directed IRAs allow you to maximize your investments.

18. Self Directed IRA Truly Diversify in Alternative non-Traditional Assets

Summary

With a self-directed IRA and with a custodian like Sunwest Trust, you can truly diversify and go into such things as real estate and private notes. If the market’s going down, you’re not necessarily losing on the private notes that you’re earning 8 or 10% on.

There are many options besides the usual stocks and bonds, mutual funds, and CDs. Some of the more popular choices are Direct Real Estate Ownership, Private Mortgage Notes, and Private Companies.

Believing that you are the best steward of your assets, Sunwest Trust can act as a custodian for your retirement account and facilitate your ability to invest in non-traditional assets within your IRA.

Johnese Turn says, “I found out that instead of just being able to invest in IRAs through CD’s, stocks and bonds, that you can invest in real estate through notes, mortgages, contracts. It just really opened my eyes to the way to diversify.”

Take Aways

With a self-directed IRA and with a custodian like Sunwest Trust, you can truly diversify and go into real estate and private notes. There are many options besides the usual stocks and bonds, mutual funds, and CDs. Some of the more popular choices are Direct Real Estate Ownership, Private Mortgage Notes, and Private Companies.
You can truly diversify and go into such things as real estate and private notes.

19. 7 Benefits of an Individual 401K or SOLO 401k

The contribution limits can be much higher with an I401k plan than most other traditional small business retirement plans.

Summary

Benefits of an Individual 401k
  1. Provides self-employed business owners the same retirement benefits that large corporations offer.
  2. In many cases, the I401k plan allows much greater tax shelter contributions than most other traditional small business retirement plans.
  3. The contribution limits can be much higher with an I401k plan than most other traditional small business retirement plans.
  4. With an I401k plan, you set up to 25% of your income as a tax-deductible profit sharing contribution.
  5. The I401k has low administrative costs.
  6. You are able to designate some or all of your deferrals as raw contributions.
  7. Unlike an IRA, you may take loans from your I401k.
  8. You can choose not to contribute in any year. The I401k gives you complete flexibility to contribute when you would want.

Take Aways

Provides self-employed business owners the same retirement benefits that large corporations offer. The I401k has low administrative costs, allows for greater tax shelter contributions, and doesn’t require you to have a custodian. For an I401k plan you are able to designate some or all of your deferrals as raw contributions.

20. Tips on Buying Real Estate Through IRA

Summary

Tips on Buying Real Estate Through IRA
  1. Notify Sunwest Trust of your intent to purchase real estate.
  2. The purchaser of the property must be your IRA (Sun West Trust Inc. will sign on behalf of your IRA) and not yourself.
  3. You can purchase property from an individual, on a short sale, a foreclosed home, on a real estate contract or a deed of trust.
  4. Go over every detail and know all the in’s and out’s so you’re not surprised in the future.
  5. Send the purchase documents to Sunwest Trust to sign as custodian.

Take Aways

You can purchase property from an individual, on a short sale, a foreclosed home, on a real estate contract or a deed of trust. The purchaser of the property must be your IRA and not yourself. Send the purchase documents to Sunwest Trust to sign as custodian.
The purchaser of the property must be your IRA and not yourself.

21. Diversify IRA with Alternative Investments

Summary

Diversity Your Retirement with Self-Directed IRA’s
Sunwest Trust provides many options in planning for your retirement and as your custodian we would hold your IRA and let you direct and diversify investments from your retirement money.

Your IRA is your security for the future and you never want to put it entirely into one financial vehicle. You want to diversify it as much as possible.

You don’t want to put your IRA into the hands of someone who’ll just put it into the stock market or some other fund where they get a commission and you get a low rate of return.

A self-directed IRA allows you to diversify your retirement savings as you see fit.

A self-directed IRA enables you to get the tax benefits of an IRA account, but have some control over the investing.

Take Aways

Sunwest Trust provides many options in planning for your retirement and as your custodian we would hold your IRA and let you direct and diversify investments from your retirement money.

You don’t want to put your IRA in the hands of someone who’ll just put it into the stock market or some other fund where they get a commission and you get a low rate of return.

A self-directed IRA allows you to diversify your retirement savings as you see fit.
Diversify your IRA investments as much as possible.

22. Guide For Setting Up Your IRA

You can instruct your custodian to transfer all, or only a part, of your current account.

Summary

Tips for Setting Up Your New Self-Directed IRA Account with Sunwest Trust
  1. Use the “Helpful Links” and select the type of IRA package you would like.
  2. Five different forms are available to fill out.
    1. IRA Custodial Account Application and Plan Agreement
    2. Fee Disclosure
    3. Account Holder Hold Harmless
    4. Transfer Form from Another IRA Custodian
    5. Direction of Investment
  3. If you are filling out a “Simple Self-Directed IRA” or “SEP IRA” find whatever additional form(s) you need to fill out.
  4. Make sure you designate your beneficiary or beneficiaries.
  5. You can instruct your custodian to transfer all, or only a part, of your current account, either by liquidating your current assets and transferring cash, or by transferring assets in kind. Allow at least 2-4 weeks to complete a transfer.

Take Aways

  1. You will need to select the type of IRA package you would like.
  2. Five different forms are available to fill out.
    1. IRA Custodial Account Application and Plan Agreement
    2. Fee Disclosure
    3. Account Holder Hold Harmless
    4. Transfer Form from Another IRA Custodian
    5. Direction of Investment
  3. If you are filling out a “Simple Self-Directed IRA” or “SEP IRA” find whatever additional form(s) you need to fill out.
  4. You can instruct your custodian to transfer all, or only a part, of your current account, either by liquidating your current assets and transferring cash, or by transferring assets in kind.

Relevant Form Downloads