An IRA custodian recently contacted a member of our staff. His account invested in a publicly traded partnership (PTP), allowing partners to consolidate capital and acquire publicly traded shares. The letter he received advised him to file a Form 990-T because income yielded by the PTP was subject to unrelated business income tax (UBIT). Need … Read More
Many self-directed investors who call our office ask, “Can I act as the property manager for my IRA-owned real estate?” The answer is yes, but there are several rules that must be followed in order to comply with IRS guidelines. Ready to invest in real estate with a tax-advantaged account? Click here to open a new account with … Read More
Traditional IRAs can promote financial success in the short and long terms through tax-deferred contributions and distributions at retirement-age tax rates. Such distributions most directly benefit anyone age 59 1/2 or higher, as anyone younger may incur taxes and a penalty. Per the Internal Revenue Code (IRC), individuals below age 59 1/2 will sustain a … Read More
What’s the difference between an IRA and a 401(k)? As the marketplace for investment opportunities has evolved, available options for retirement strategies have followed suit. Different combinations of retirement plans, publicly traded securities, and alternative investment options allow investors to adopt a strategy that satisfies their financial goals. However, some may speak of IRAs and 401(k)s interchangeably, … Read More
Form 5498 is a simple tax form that’s typically issued after tax day. This document describes: The fair market valuation of your account Any contributions you made in the previous tax year The type of asset(s) your account held. NDTCO generates Form 5498s once a given tax year is over. We send one copy to … Read More
Does your self-directed IRA hold a stake in an operating business that passes income taxes through to investors? Does your account earn rental income from financed real estate? In either case, you may receive a Schedule K-1 that describes earnings generated under the aforementioned circumstances. Your individual retirement plan may owe unrelated business income tax (UBIT) on these earnings, … Read More
New Direction Trust Company (“New Direction”) performs the duties of a directed custodian. It does not provide any investment advice, legal advice, or tax advice. New Direction does not undertake any due diligence for you, including with respect to any investment or investment provider featured in this blog post or joint webinar or any other investments that you choose to hold in your New Direction account(s). Any information regarding any investment provider or investments that is contained in this blog post or Webinar was provided by the third-party investment provider. New Direction is not affiliated with, does not control or direct, and has no responsibility over any third-party investment provider or investment, and the inclusion of any investment provider or investment options in this blog post or Webinar does not represent an endorsement or recommendation of the investment provider or investment by New Direction in any way. New Direction does not endorse or recommend any investment provider or investment, including those found in this blog post or Webinar. Information and third-party links contained in this blog post or webinar are provided for informational purposes only, and it is solely the responsibility of investors to perform their own, independent due diligence on any investment opportunity. Investors should consult their own investment, legal, and tax advisors before making any investment choices.
