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The New Direction Trust Company Blog

What Is a Coverdell Education Savings Account? 

Investors enjoy a wide variety of tax-advantaged savings options when planning for their futures. IRAs and 401Ks help save for overall retirement costs, Health Savings Accounts target future health expenses, and Coverdell Education Savings Accounts (ESAs) focus on education costs of children and dependents.  Ready to open a Coverdell ESA? Click here to access our ESA Application Packet!  Unlike other tax-advantaged plans, a Coverdell ESA is intended to cover a beneficiary’s costs, in this case educational expenses. Typically your child … Read More

should i have two iras

Could It Make Sense to Have Both a Traditional ...

Today’s retirement investors have a broad variety of account and investment options. Some may browse their retirement plan options and assume that it would make sense to hold only one account. For example, when comparing Traditional IRAs to Roth IRAs, you may feel inclined to choose only one. But could it make sense to hold … Read More

form 1099-r

What is Form 1099-R?

If you took a distribution from a retirement account in 2020, you should receive a Form 1099-R soon. Once you have it, what are you supposed to do with it? Need to review your account information? Access the Client Portal. Preparing Your Tax Filing The beauty of investing with a tax-advantaged plan is your ability to … Read More

cash-producing assets

Cash-Producing Investments in a Low-Yield Envir...

The COVID-19 pandemic has taken the global economy for a wild ride. To combat the crisis, the U.S. government implemented measures to mitigate damage, such as the CARES Act. At the same time, the Federal Reserve tapped its playbook for one of its favorite maneuvers: Lowering interest rates to create cheaper debt and keep the … Read More

partner on investments

Three Ways to Partner on Investments With Your ...

As the saying goes, “It takes money to make money.” Nowhere is this truer than with high-value—and potentially quite lucrative—alternative investments. Private assets like real estate, private loans, and private equity have the potential for meaningful appreciation, sometimes in short periods. Further, in real estate and certain private equity investments, your dollars can be paired … Read More

prohibited transactions

Prohibited Transactions and Self-Directed Inves...

With the benefits that self-directed IRAs, 401(k)s, and Health Savings Accounts offer, investors must be aware of unique limitations. Below we provide an overview of the rules and relevant definitions found in IRC, Section 4975 that investors should know. Questions about prohibited transactions? Log in to your Client Portal to send questions directly to our staff … 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.