American IRA Explains Exceptions and Prohibited Transactions
ASHEVILLE, N.C., Oct. 26, 2018 /PRNewswire-PRWeb/ -- A Self-Directed IRA can mean tax-deferred growth for a long time, allowing retirement investors to put away vast sums of money while compounding interest helps build a substantial nest egg. And a Self-Directed IRA can open a world of diversification investing, including assets like real estate, precious metals, and even tax liens. However, as American IRA recently noted at its blog, there are some prohibited transactions in IRAs that investors need to be aware of if they are to avoid fees and penalties throughout their retirement planning process.
Because the law does not restrict Self-Directed IRA investors to stocks, bonds, and funds, there is more freedom through Self-Direction. But that means investors are free to choose from many different types of investments, including both residential and commercial real estate. However, the recent article at American IRA pointed out the prohibited transactions that would not fall under the umbrella of a tax-protected IRA, including life insurance, gemstones, jewelry, art, and collectible wines. Some investors hold these assets to diversify out of currencies, stocks, bonds, and even real estate--but they cannot be used in an IRA.
"There are a lot of options out there," noted Jim Hitt, CEO of American IRA. "You can invest in just about whatever you want. But if you want to invest in something with the umbrella of an IRA, the IRS is clear that there are some transactions that simply cannot take place. This is typically those transactions that can be hard to quantify, which is understandable. It is important for Self-Directed IRA investors to be aware of these peculiarities before getting to excited about the prospect of putting a wine collection in an IRA, for example."
Because these transactions are prohibited, investors who want to maximize their retirement investment dollar will likely have to stick to real estate, stocks, private companies, and even precious metals. But one advance of the Self-Directed IRA is that it opens up many possibilities.
For more information, visit the post at http://www.AmericanIRA.com or call 866-7500-IRA.
About:
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 $400 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
