April 2019 Note from the Principals

We’ve entered the home stretch of the 2018 tax year. In light of the upcoming tax filing deadline on April 15, here are a few reminders to bear in mind over these next couple of weeks:

  • Have you made your full 2018 contribution yet? If not, you still have until April 15 to make an IRA deposit. You can even open a new account and still contribute for 2018 even though the 2018 calendar year has passed. However, please keep in mind that 2018 contribution limits still apply for contributions attributable to that tax year. Click here for more information about the 2018 and 2019 contribution limits that may apply to your account.

  • Did your self-directed IRA earn unrelated business taxable income or unrelated debt financed income last year? If so, your account may owe unrelated business income tax (UBIT). Our sister company, IRA Tax Services, can help you file a tax return (Form 990-T) on behalf of your IRA if needed.

  • Did you take a distribution in 2018? Those who withdrew cash or assets last year will have received a Form 1099-R. This tax document reports the distribution value and includes a code that can help you determine the taxability (the inclusion of the amount in your 2018 annual income) of your distribution.

New Direction Trust Company is always happy to help with account-related questions, and please don’t hesitate to consult with your accountant or tax professional to address your individual tax matters. Feel free to give us a call at 877-742-1270 or send us an e-mail at info@ndtco.com.


Catherine Wynne & Bill Humphrey