Are Self-Directed IRAs with Checkbook Control Legal? Yes. The question was brought before the U.S. Tax Court in Swanson v. Commissioner, 106 T.C. 76 (1996). The Court ruled against the IRS and affirmed the validity of the Checkbook Control platform. The IRS acknowledged the Court’s ruling in Field Service Advisory (FSA) 200128011 (April 6, 2001). […]
Background of Prohibited Transactions In 1974 the US government instituted legislation which was aimed at encouraging its taxpayers to save for retirement. To accomplish this objective, the government permitted special retirement accounts like IRAs which allow taxpayers to save money and enjoy deferred tax benefits. These tax benefits could be accrued in a tax deferred […]
Most investors discover the benefits of alternative assets and Checkbook Control after having already invested their retirement funds in a standard IRA or 401(k). Fortunately, almost any existing retirement plan can be rolled or invested into any other—including self-directed accounts. The specific details of the transfer will differ depending on the nature of the original […]
Q: I just did an indirect rollover to fund my new self-directed IRA or Solo 401(k), which means that my prior custodian/trustee will issue a 1099R and mark it as a distribution. How do I advise the IRS that I redeposited the funds within 60 days into my new self-directed IRA or Solo 401(k) so […]
UBIT Definition UBIT stands for Unrelated Business Income Tax. This is a tax that applies to the profits of an active business owned by a Self-Directed retirement account. Most investors never run into it, because the types of investments favored by the Self-Directed platform are normally passive in nature and thus are tax deferred, (or […]
The UDFI tax for a Self-Directed IRA most often comes into play when the IRA borrows money to purchase real estate. But what is UDFI, and when can it occur? Learn more from the Self-Directed Specialists at Broad Financial.
Here is a Cost Comparison of Broad Financial's IRAs: To see a comparison of Self Directed IRA structures, please scroll below. Self Directed IRA Fee Structures When researching Self Directed IRAs, you’ll find that there are three basic fee structures: Transaction Fees. In this model there is a low set-up fee, and the account holder […]
Setting up a Self-Directed IRA can be surprisingly simple, and the results give you much greater control over how your retirement funds are invested. Learn how to open a Self-Directed IRA, then contact Broad Financial to get started today!
