Articles Categorized in: Blog
An IRA LLC structure gives account owners more control when investing in real estate; however, it’s still essential to understand all applicable rules regarding prohibited transactions and disqualified parties. Once an IRA LLC is formed, you can open a business checking account by transferring funds from your self-directed IRA into its operating agreement. Liability Protection IRA LLCs provide many of the same investment benefits associated with traditional retirement accounts, with additional liability protection. With an LLC investment account, funds do...
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If you leave an employer-sponsored retirement plan, typically any distribution can be moved directly into an IRA without incurring penalties or taxes. This process is known as direct rollover. Cashing out and moving funds directly to a bank account may incur income taxes as well as an early withdrawal penalty of 10%, unless an exception applies. 401(k) plans are tax-deferred 401(k) plans provide employees the ability to invest a portion of their paycheck before taxes are deducted, allowing it to...
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Custodian banks are financial institutions that specialize in safekeeping, transaction settlement and administration for securities. Furthermore, they also provide other value-adding and cost-saving services like asset servicing and reporting. Before investing your hard-earned money with an IRA custodian, it is vital that you research their fees, customer service levels and servicing times thoroughly before opening an account with them. What is a custodian? Custodians are entities approved by the Internal Revenue Service to hold individual retirement accounts (IRAs). These entities...
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IRAs do not permit margin trading or using naked short options; however, some brokers do provide limited margin options in these accounts so traders may trade certain spread strategies using unsettled funds. Covered calls are an increasingly popular strategy to generate income in an otherwise down market, while another option would be buying an inverse ETF, which rises when benchmark stocks decline. IRA Margin Accounts Investors with an IRA may find greater trading flexibility with a margin account. While these...
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If you are considering investing in gold ETFs, it is crucial that you are familiar with their tax implications in order to make an informed decision as to which investment option is the most suitable for you. This article can assist in this regard. Physical gold is classified as a collectible, so any ETF gains related to gold may be subject to the top 28% capital-gains tax rate for collectibles. You can avoid this tax by holding assets in an...
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Medallion stamps provide special certification that verifies that signatures on securities transfers are authentic. Banks, credit unions and brokerage firms all offer this service but must belong to one of three medallion programs for it to take effect. As medallion stamps expose financial institutions to substantial liabilities, they typically only offer them at a fee to established customers who are known and trusted. Banks Signatures are standard in legal and business documents, but some require an extra level of security...
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Gold IRAs provide investors with an additional form of retirement savings diversification through precious metals. Following similar rules to traditional IRAs, these accounts can either be set up pre-tax or Roth. Contribution limits and early withdrawal penalties apply. Gold IRA investors can fund their accounts with either cash or assets from existing accounts; however, fees must still be paid to the precious metals dealer, custodian and depository in order to operate effectively. Tax-free growth An Individual Retirement Account, or “IRA”,...
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Gold and silver investments are considered by many investors to be assets, which may increase in value over time. When sold, any profits are subject to capital gains taxation. Where you live determines how much taxes you owe. New Jersey, with support from Sound Money Defense League and Money Metals Exchange, recently passed legislation which exempted precious metal sales tax sales taxation altogether. Exemptions Physical gold and silver have long been prized as tangible stores of wealth and an insurance...
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While precious metals may be sold anonymously, some transactions must still be reported to the IRS based on anti-money laundering laws designed to combat illegal activities. Before making any significant purchases it would be prudent to consult a tax professional. Gold and other precious metal profits typically incur capital gains taxes; however, any heirs who inherit such items receive long-term capital gains treatment on any future sales of these assets. Cost basis Cost basis is an integral component of capital...
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Gold can be an attractive investment option during times of economic instability. Due to its low correlation with stocks and bonds, gold provides stability when other investments decline while providing protection against inflation. Stocks have consistently outshone gold since 1980 in terms of long-term returns. While adding gold can reduce risk in your portfolio, stocks offer the better long-term prospects. It’s a tangible asset Gold can serve both as an effective store of value and as a hedge against inflation....
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