What is a Self-Directed IRA?
Simply stated, a self-directed IRA is one that permits the account holder the broadest possible investment choices, including those outside the public markets.
In fact, a self-directed IRA is not a type of IRA at all as all types of IRAs, along with other plans, can be self-directed. Rather, it is a structure enabled by the custodian and administrator that permits you to make your own investment decisions over the widest possible menu of choices.
Real estate, notes, private placements, gold, silver, platinum, palladium, joint ventures, and tax liens are only a small sampling of the possibilities.
With a self-directed IRA from NuView, you are in control of all the decisions, and as such always advised to consult your investment and tax professionals for the best possible advice that is tailored to you.
What is Your Role in Self-Direction?
Unlike a managed account with your stockbroker, or an investment in a mutual fund, you have a heightened role as a self-directed IRA account owner. In essence, you serve as the fiduciary of your plan, making all the investment and sales decisions yourself, not under dictation by your administrator or custodian.
Choosing the proper retirement account is a personal decision, based on eligibility and contribution limits, as well as the taxation properties of the plan. Your CPA or tax advisor will likely be able to help you determine the best option for you.
Determining the investment choice and price is up to you, and often requires you to seek out new advisors and opportunities beyond the traditional publicly traded options. Some clients like to concentrate on real estate or notes, while others seek broader choices in order to further diversify their portfolios.
The process is simple: Once you open and fund your NuView self-directed IRA, just complete the purchase paperwork and submit it to NuView to notify us of your intent to invest your IRA resources. As a general rule, you will initial the purchase documents, and your NuView designee will sign on behalf of your IRA.
Staying involved with your investment is prudent with any type of IRA. Some investment providers will advertise rates of return that seem too good to be true. They often are. Whether you self-direct your IRA into real estate or shares in an LLC, remain diligent in watching the management and performance of that asset. If you hold a note in your IRA, work with your loan servicer to ensure that payments are current or that collection activities are underway. Similarly, if rents are not being paid on time by your tenant, contact the IRA property manager to request payment.
Continue to make contributions as there may be no better tax advantaged possibility than a self-directed IRA, which is the case for many clients. In years when your income increases, look to increase your contributions. In years with lower income, perhaps look to convert existing pre-tax IRAs to Roth IRAs.
What does NuView Do?
As a self-directed IRA administrator headquartered in Florida, we provide the accounting and the forms required by the Department of Labor. We offer the paperwork to purchase, maintain, and sell an asset, all within the IRA account.
Our record-keeping ensures that you will know where every penny of your account is located – from the time we receive your first transfer or contribution until your retirement account is closed or transferred to a beneficiary.
We file the necessary paperwork with the IRS to keep your account tax-deferred, including the annual valuation and account activity report (5498) as well as form 1099s if distributions occurred during the previous year.
Our team of Florida-based self-directed IRA professionals updates your asset values with fair market values provided by you and signed by a qualified third-party.
We hold your undirected cash in FDIC-insured institutions, protected up to the legal limits. Our custodial bank, First Trust Company of Onaga, engages us to serve as record-keeper for your accounts with NuView.