The New Direction Trust Company blog provides you with the knowledge to feel confident in your self-directed investment. Explore our blog to learn more about alternative investing!
About NDTCO
We are a private financial trust based in Louisville, Colorado that provides best-in-class custodial services for more than 50,000 self-directed accounts and holds $3.7 billion in cash and assets for our clients. Our ongoing mission is to provide the education, flexibility, and account management tools investors need to realize that the spectrum of self-directed investments is broader and easier to manage than they think.
In exchange for the tax advantages offered by Traditional IRA accounts, the IRS enforces rules regarding Traditional IRA distributions. If a Traditional IRA holder takes a distribution before reaching age 59 1/2, they may face a 10% penalty on top of the applicable taxes. However, the IRS offers a few exceptions to this rule. Questions … Read More
Real estate is a common investment choice for self-directed IRA account holders. Investors can translate pre-existing knowledge of the real estate market to their IRA investment strategy. Part of devising a long-term plan for your real estate IRA is understanding how refinancing your IRA-owned real estate can reduce UBIT or unrelated business income tax. Want to … Read More
Self-directed IRAs accrue tax-advantaged or tax-free earnings. They can also be passed down to beneficiaries so that the fruits of your labor aren’t lost. Inherited IRAs leave your beneficiaries money and help them avoid the hassle and expenses of transferring the money through probate. Most trust accounts require probate upon the account owner’s death for … Read More
Real Estate With A 401(k) A Solo 401(k) operates in a similar manner to that of an employer-sponsored 401(k), except a Solo 401(k) holder would be the sole employee of his or her own business. In this regard, the account holder would simultaneously act as employee and employer when managing his or her Solo 401(k). As … Read More
The 72(t) rule refers to IRS Code 72(t), which allows investors to take early distributions without incurring 10% penalties. Questions about distributions? Log in to the Client Portal to send a secure inquiry directly to our staff. What Is The 72(t) Rule? The 72(t) rule necessitates that IRA owners take at least five “substantially equal … Read More
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
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.
