One of the most widely utilized financial instruments for retirement savings in the United States is the IRA structure. There is a high probability that most people saving for retirement, and most financial professionals, have heard about an IRA and may know quite a lot about the subject. According to the Investment Company Institute Study reported on 1/2008, over 46 million households have an IRA. And yet…
IRAs are primarily contained in Internal Revenue Code, Section 408. Although there are many sections of the Internal Revenue Code that pertain to IRAs, the bulk of the information is contained in Section 408.
According to the Investment Company Institute Study reported on 1/2008, over 46 million households have an IRA.
While the term IRA has become a household name for most people saving for retirement, we have found that a fairly large number of investors and financial professionals have either never heard of a Self-Directed IRA or have limited knowledge on the subject. Many people think that the Self-Directed IRA concept must have been created with new legislation in recent years. A Self-Directed IRA is under the exact same rules as a standard or traditional IRA. There are no different rules or regulations that guide a Self-Directed IRA.
There is no new legislation that "allows" for a Self-Directed IRA. Simply put, a Self-Directed IRA is an IRA that provides for a great deal more flexibility than what most people believe an IRA can provide.
A fairly large number of investors and financial professionals have either never heard of a Self-Directed IRA or have limited knowledge on the subject
In recent years there has been heightened interest in Self-Directed IRAs due to media attention, volatile securities markets, and low interest rates. Recent legislation further created new distribution options and made IRA rollovers available to a wider range of investors. Thus, it is likely that IRA rollovers will continue to increase in coming years. As rollovers from qualified retirement plans into IRA accounts increase, it is reasonable to believe that interest in Self-Directed IRAs will also continue to increase.
Self-Directed IRA investments range from traditional investments, to real estate, venture capital opportunities, businesses, notes, and stock trading capabilities. Many investors wish to exert significant control over their retirement accounts. Self-directed IRAs can potentially offer that desired flexibility. |
