Self-directed IRAs (SDIRAs) offer an expansive range of opportunities for diversifying retirement portfolios, with real estate assets standing out as a prime choice for many. While the options are nearly limitless—encompassing everything from residential to commercial properties and even vacant land—it’s crucial for investors to stay informed and compliant with IRS regulations. Failure to do so could lead to hefty penalties, which can derail retirement plans.

Whether for retirement, a vacation, their children’s college, etc., they have the right habits to turn savings goals into a reality. What is their secret?

If you're self-employed or a small business owner with no full-time employees, the Solo 401(k) (also known as an Individual 401(k)) could be the ideal retirement savings plan for you. With high contribution limits, tax advantages, and flexibility, the Solo 401(k) allows you to take control of your retirement savings. Here's everything you need to know about this powerful retirement account.

In this post, we’ll explore three crucial elements that every IRA holder should be familiar with—especially those utilizing SDIRAs—to make informed decisions and maximize their retirement benefits. From Required Minimum Distributions (RMDs) to properly valuing assets and planning your estate, understanding these essentials can help pave the way to a financially secure retirement.

In the first part of our series on Individual (k) accounts we discussed who can have one, and all of the great benefits to starting up an Individual K account. But now that you have one, do you understand what your options really are? Do you know what steps to take to get the most benefit out of this incredible tool?

Did you know that if you have not contributed to your Roth IRA for the 2024 tax year, you can still contribute up to Tax Day 2025 if you are eligible?

Many people assume that their will or trust is enough to ensure that their money goes where they want it to when they pass away. However, when it comes to retirement accounts, annuities, or even life insurance policies, the person listed on your Beneficiary Designation Form will inherit that asset, even if that is no longer your intention.

Many people are unaware that they can use their individual retirement account (IRA) to invest in more than traditional options like stocks, bonds, and mutual funds. In fact, with a Self-Directed IRA, investors can tap into a much broader range of assets to grow their retirement savings. This flexibility opens the door to opportunities that go beyond the usual offerings, empowering investors to take control of their financial future.

A Roth 401(k) is a powerful retirement savings tool that combines the benefits of a traditional 401(k) with the tax advantages of a Roth IRA. If you're considering contributing to a Roth 401(k) or already have one, it's important to understand how this type of account works and how it differs from other retirement savings options. Here are four key things you should know about Roth 401(k) accounts.

For high-income earners, saving for retirement using a Roth IRA can be a bit tricky due to income limits that restrict direct contributions. But don’t worry — there’s a clever workaround known as the Backdoor Roth IRA. This strategy allows individuals to take advantage of the tax benefits of a Roth IRA, even if their income exceeds the IRS limits. Here's how it works.

When it comes to saving for retirement, small business owners and self-employed individuals have unique challenges. Traditional employer-sponsored retirement plans like 401(k)s can be costly and complex to manage. Fortunately, there are simpler, more cost-effective options designed specifically for small businesses: SEP and SIMPLE IRAs. These retirement plans offer flexibility and benefits tailored to the needs of small business owners.

Self-Directed IRAs (SDIRAs) have become increasingly popular among investors seeking greater control over their retirement funds and the ability to diversify their investment portfolios. However, many people still have questions about how these accounts work and whether they are the right choice for their financial goals. In this post, we will answer seven common questions about SDIRAs to help you make an informed decision.

Real estate investments have long offered a potent mix of appreciation and income, making them an attractive option for many investors. Investing in real estate through a self-directed IRA has become increasingly popular, offering unique benefits and opportunities to diversify and take greater control of your assets. Remember that while there isn't a definitive formula for success in real estate investing, many successful investors share certain key characteristics.

Roth-designated 401(k)s offer a powerful way to save for retirement, combining the high contribution limits of traditional 401(k)s with the tax-free growth potential of Roth IRAs. Understanding these ten key aspects can help you make informed decisions about incorporating a Roth 401(k) into your retirement planning strategy. Always consider consulting with your financial advisor to tailor your retirement plan to your specific needs and goals.

Private stock refers to company shares that are not traded on public stock exchanges. Private companies typically offer these shares, ranging from small startups to larger established firms.

Planning for retirement involves making strategic decisions about your savings. One such decision may involve in-service distributions for direct rollovers to an IRA. This option allows participants in a 401(k) or 403(b) plan to roll over funds into an IRA while still employed. Here’s everything you need to know about this powerful retirement planning tool.

When planning for retirement, it's essential to understand the various investment options available to you. Two of the most common retirement accounts are the Traditional IRA and the 401(k). While both aim to help you save for the future, they differ significantly in structure, benefits, and eligibility.

Maximizing your IRA investments often requires a retirement plan that allows for diversification into alternative investments. A self-directed IRA enables you to invest in what you know best, offering the flexibility to diversify into real estate, private stock, notes, mortgages, partnerships, and joint ventures, within the constraints of IRS rules.

Individual Retirement Accounts (IRAs) are essential tools for securing a strong financial future. The two most popular types, Roth IRAs and Traditional IRAs, each offer unique tax advantages and have distinct features. This blog delves into the critical differences between them, including tax treatment, contribution and income limits, required minimum distributions (RMDs), and early withdrawal rules.

Discover the potential of Self-Directed Individual Retirement Accounts (IRAs) in expanding your investment horizons beyond traditional stocks and bonds. A Self-Directed IRA allows you to diversify your retirement portfolio by investing in a broader range of assets, offering flexibility and control over your savings. Delve into the complexities of alternative investments within your Self-Directed IRA with our guide, featuring essential steps and considerations to navigate this dynamic financial landscape effectively.

In the realm of retirement planning, selecting the right Individual Retirement Account (IRA) is pivotal to achieving your financial objectives. This blog post explores two prominent choices: the Self-Directed IRA (SDIRA) and the traditional brokerage IRA. Delving into their distinctions equips you with the knowledge to make informed decisions tailored to your retirement savings goals. Discover why opting for a Self-Directed IRA could significantly bolster your retirement strategy.

In 2022, the SECURE Act, also known as SECURE 2.0, brought forth pivotal changes to tax-advantaged savings plans. One of the notable updates effective from 2024 allows for the rollover of certain assets from 529 higher education savings plans into Roth IRAs. This provision presents a strategic opportunity to leverage 529 plan funds for retirement savings, particularly beneficial when educational expenses fall short of projections. Discover how this new option works and its potential advantages for maximizing savings towards retirement goals.

Required Minimum Distributions (RMDs) are pivotal in retirement planning, ensuring individuals withdraw a minimum annually from their accounts, starting at age 73. However, missing an RMD can lead to penalties. If overlooked, individuals must promptly withdraw the missed amount to avoid a 25% excess accumulation penalty tax from the IRS. Correcting this error swiftly can reduce the penalty to 10%, a welcome change from the previous 50% penalty prior to 2023. Understanding these rules is crucial for maintaining compliance and maximizing retirement savings.

In the realm of retirement planning, a significant shift is underway: starting in 2024, Required Minimum Distributions (RMDs) will no longer apply to designated Roth accounts in employer-sponsored plans. RMDs, mandatory withdrawals from retirement accounts like IRAs and 401(k)s upon reaching a certain age, were meant to ensure timely use of savings in retirement. This change, increasing the age threshold to 73 for those affected after December 31, 2022, marks a pivotal regulatory update offering retirees enhanced financial autonomy. Learn more about this transformative development and its implications for retirement planning.

Discover the advantages of a SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account), a retirement savings plan tailored for small businesses and self-employed individuals. This blog post delves into how a SIMPLE IRA offers an easy and cost-effective solution for both employers and employees to contribute to individual retirement accounts. Learn about its benefits, contribution limits, and how it simplifies the process of securing a financially stable future for your team and yourself.

Retirement planning for self-employed individuals and small business owners presents unique challenges and opportunities. Unlike employees at larger companies who often benefit from employer-sponsored 401(k) plans, entrepreneurs and freelancers must navigate the retirement landscape independently. One highly effective tool at their disposal is the Solo 401(k), also known as an Individual 401(k) or a One-Participant 401(k). This plan is specifically designed for self-employed individuals or business owners with no full-time employees other than the owner and their spouse. The Solo 401(k) combines features of traditional 401(k) plans and profit-sharing plans, offering higher contribution limits and greater flexibility. Key features include high contribution limits, significant tax benefits, loan options, easy administration, and broad investment choices. This plan is ideal for sole proprietors, independent contractors, and small business owners with no full-time employees, particularly those with variable incomes. However, it’s important to note that hiring employees necessitates a switch to a different retirement plan, and adhering to contribution limits and deadlines is crucial. In conclusion, a Solo 401(k) can be an excellent retirement savings tool for those who are self-employed or own small businesses. To determine if a Solo 401(k) is the best fit for your financial situation, consulting with a financial advisor or Certified Public Accountant (CPA) is highly recommended.

This blog post provides a comprehensive overview of indirect rollovers in the context of retirement planning. It covers essential topics such as what an indirect rollover is, the process involved, key rules like the 60-day rule and the 1 per 12-month rule, tax implications including withholding, and exceptions to the rules. The post emphasizes the importance of understanding these regulations to avoid unintended tax consequences and maximize the benefits of managing retirement savings effectively. It concludes by advising readers to seek personalized advice from financial advisors or tax professionals to navigate the complexities of indirect rollovers tailored to their specific circumstances.

This blog provides essential guidance on managing Individual Retirement Account (IRA) contributions to avoid costly mistakes. Excess contributions, which exceed IRS limits, can incur significant penalties. For instance, in 2024, individuals under 50 can contribute up to $7,000. Excess contributions may arise from contributing to a Roth IRA above income limits or making ineligible rollovers. The IRS imposes a 6% annual tax on excess amounts until corrected, typically by October 15 of the following year. Options post-deadline include withdrawals with penalties or applying excess amounts to future contributions. Proper management and timely corrections are crucial for optimizing retirement savings and avoiding financial penalties.

Managing multiple Individual Retirement Accounts (IRAs) can be complex, but consolidating them can simplify retirement planning. Mountain West IRA often hears from clients asking if they can combine their IRAs, and the answer is a definite "Yes!" Consolidation offers several benefits, including simplified account management, a cohesive investment strategy, and potential cost savings on fees. The consolidation process involves selecting a provider, deciding which accounts to merge, initiating the transfer, and reviewing investment options post-consolidation. Key considerations include avoiding tax pitfalls, timing the consolidation carefully, and updating beneficiary designations. Mountain West IRA provides guidance through every step of this process, helping clients streamline their retirement savings. For personalized advice, consulting with a financial advisor is recommended.

In this blog post, we explore the benefits of Roth IRAs as a powerful tool for retirement savings. A Roth IRA differs from traditional IRAs primarily in its tax treatment: contributions are made with after-tax dollars, leading to tax-free growth on investments and tax-free withdrawals under certain conditions. Key advantages include exemption from Required Minimum Distributions (RMDs), flexibility in withdrawal timing, and the ability to withdraw contributions tax-free at any time. Understanding the distinction between qualified and non-qualified distributions is crucial to avoid penalties and optimize tax efficiency. Strategic planning around withdrawal orders can further enhance the benefits of a Roth IRA. Overall, the post emphasizes the importance of tailored financial advice while providing a comprehensive overview of Roth IRA benefits and rules.

In this blog post, we explore the process and considerations involved in converting your retirement savings to a Roth IRA. Retirement savings options such as Traditional IRAs, SEP IRAs, and employer-sponsored plans like 401(k)s are discussed, emphasizing their tax advantages. The blog highlights the eligibility criteria for converting these funds to a Roth IRA, noting that all funds from eligible accounts can be transferred. Key points include the tax implications of conversion, the process itself—which involves checking eligibility, understanding tax implications, initiating the conversion with your financial institution, and reporting it to the IRS—and the benefits of a Roth IRA, such as tax-free withdrawals in retirement and flexibility in managing retirement funds. The post concludes by advising readers to seek personalized advice from financial professionals to navigate the conversion process effectively.

In "Is Your Traditional IRA Contribution Deductible?", we explore the complexities of deducting contributions to a Traditional IRA. This blog highlights key factors influencing deductibility, such as coverage by employer retirement plans and income thresholds. For those uncovered by such plans, contributions are fully deductible, but coverage can reduce or eliminate deductibility based on modified adjusted gross income (MAGI). Readers are advised to consult IRS guidelines, particularly Publication 590-A, to navigate these rules and ensure accurate reporting. Properly managing deductibility helps maximize retirement savings and tax benefits, underscoring the importance of professional advice for tailored financial strategies.

Investing in an Individual Retirement Account (IRA) is crucial for many Americans' retirement strategies, offering substantial tax benefits and growth potential. However, the intricate rules governing IRA contributions can be tricky, often leading to excess contributions that incur penalties and diminish your savings. This blog identifies six common scenarios where over-contributing to an IRA can occur and provides practical tips to prevent these errors. It highlights the importance of understanding annual contribution limits, managing multiple IRA accounts, adhering to income limits for Roth IRAs, completing rollovers within the designated period, tracking automatic contributions, and ensuring contributions align with earned income. By staying informed and cautious, you can avoid these pitfalls and optimize your retirement savings. Consult with a financial advisor for tailored advice to navigate your IRA contributions effectively.

This blog post provides a comprehensive overview of a SEP IRA, covering its definition, benefits, eligibility criteria, and suitability for various types of business owners and self-employed individuals. It emphasizes the high contribution limits, tax advantages, simplicity in administration, and flexibility in contribution decisions annually. The post also highlights that SEP IRAs can be beneficial for both small business owners and self-employed individuals looking to maximize retirement savings while potentially providing retirement benefits to employees. It concludes by recommending consultation with a financial advisor for personalized guidance.

"Planning for retirement involves making savvy financial decisions, including utilizing prior year contributions to your IRA. This strategy offers flexibility and potential tax benefits, but it's essential to understand the rules. Learn about deadlines, contribution limits, tax implications, and the advantages of both Traditional and Roth IRAs. Whether you're catching up on savings or optimizing your tax strategy, these six key facts will guide you toward maximizing your long-term financial health."

A K-1 form is essential for a Self-Directed IRA to report income, deductions, and credits from its investments in partnerships, S corporations, estates, or trusts. These entities typically pass through their income or losses to their partners or shareholders, including the IRA. The K-1 helps in tracking the IRA's share of these financial activities, determining potential tax liabilities such as Unrelated Business Income Tax (UBIT), and reporting the IRA's Fair Market Valuation (FMV) accurately.

This blog post explores the benefits of opening a Self-Directed IRA with Mountain West IRA, focusing on alternative investments like Real Estate, Private Placements, and Promissory Notes. It highlights how returns from these investments—such as rental income, equity growth, dividends, interest payments, and property appreciation—contribute to enhancing the IRA's value. The post emphasizes diversification, potential for higher returns, and increased control over retirement funds, while stressing the importance of due diligence and professional financial advice for making informed investment decisions.

This blog provides a comprehensive overview of who is eligible to set up an Individual Retirement Account (IRA), highlighting key eligibility criteria such as age, income requirements, and tax filing status. It emphasizes the flexibility and benefits of both Traditional and Roth IRAs for various groups, including young professionals, self-employed individuals, and those seeking tax advantages or additional retirement savings options. The blog encourages readers to consider IRAs as a powerful tool in their retirement planning, suggesting consultation with a financial advisor to tailor decisions to individual financial situations.

Let’s get the obvious question out of the way first. What is an alternative investment?

Life Changes, Job Changes, when is it a good time to check in with your retirement accounts?

Learn how to double your retirement savings and investments overnight.

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An Individual 401(k) (or IK) works much the same as traditional 401(k) plans offered by large companies.

To maximize your allowable IRA investments, it is essential to have a retirement plan that allows you to select your own alternative IRA investments.

To maximize your allowable IRA investments, it is essential to have a retirement plan that allows you to select your own alternative IRA investments.

Many people believe borrowing from their 401(k) account is a smart idea because the interest rate is generally lower than a commercial loan.

Ever wonder what tips a financial advisor gives to his/her friends?

Financial discipline is a critical subject in that recklessness in spending money may lead to bankruptcy alongside other financial-related problems.

Retirement planning is a greatly advanced process, and we unequivocally urge retirees not to endeavor through it alone.

Most people are interested in saving money for retirement.

Health Savings Account (HSA) owners have the option to designate beneficiaries, similar to any type of retirement account.

Not everyone is excited about the prospect of retirement.

Many investors feel that sinking feeling in the pit of their stomach as they look at their 401(k) and IRA statements.

Many investors still are not aware that they can invest in alternative investments.

In the June 2006 Insights I established the basis for a theory I called at the time “Independent Portfolio Theory.” I have since honed this idea more and developed it into “Mixed Portfolio Theory.”

I have been speaking in the last year and looking at several economic indicators and I have realized that we may already be in a re-stagnation scenario similar to “The Great Recession” of 1974-1980.

Throughout the last three decades, “financial planning” has developed from non-existent to hot button marketing for hundreds of firms. Where did all of the terminology come from that lead investors to a barrage of confusion?

Self-directed IRAs are a great way to save for retirement by investing in assets such as real estate, first trust deeds, precious metals, private equity investments, private stock, and private LLCs/LPs.

Glossary of Commonly Used IRA Terms

When investing in real estate with a self-directed IRA, there are a few rules the account holder needs to be aware of so they don’t get penalized.

Are you looking to secure your retirement with enough wealth to live the lifestyle you want? If so, then consider a Mountain West IRA self-directed IRA.

When an employee leaves their job, they have to make a decision about what to do with their employer-sponsored 401(k).

When planning for retirement, people often forget to include the cost of healthcare which can be a significant expense.

Real estate is a tangible investment, which is one of the main reasons it has become a popular choice for IRA accounts.

In a partnership, which is a type of unincorporated business organization, multiple individuals, called general partners, manage the business and are equally liable to the debts of the business.

When investors with self-directed IRAs consider investing in real estate, they usually think of rental properties or homes they can flip instead of raw land.

Employer-sponsored plans often contain many rules that can be confusing for both employers and employees of a small business.

With a self-directed IRA comes many allowable investments. One of these options is investing the IRA in a tax lien.

One of the advantages of opening a self-directed IRA with Mountain West IRA is the ability to invest in real estate.

Some investors do not realize it is legal to purchase non-traditional assets using an IRA.

Gold is not only a great way to diversify an investment portfolio, but has also been a reliable investment commodity for throughout history.

Visualization is a technique many people use to reach their goals.

Saving for retirement does not always go as planned. Retirement savings are subject to threats, both direct and indirect.

Many younger workers have the task of balancing debt reduction with retirement savings.

When estimating how much money is needed for retirement, workers must keep in mind the rising costs of healthcare.

Recently, the Federal Reserve Board has identified five financial behaviors that are key to successfully saving for retirement.

There seems to always be those people who are great at saving.

Although the options are nearly unlimited when investing in real estate with a self directed IRA, it is extremely important to understand and follow the IRS guidelines to avoid hefty penalties for violations.

Self-directed retirement accounts have gained popularity over the years.

Millennials are struggling to save and pay off student debt at the same time, putting them behind in the retirement savings area.

Long-term investors take a different approach to creating and molding their portfolio.

Heath Savings Accounts have gained popularity over the last few years.

At the end of the day, most people just want to relax and turn off their brains. They don’t want to think about their retirement accounts or investments.

One of the benefits of having a Mountain West IRA self-directed retirement account is the variety of allowable investments.

It can be a tough decision for most people when choosing the most beneficial way to spend or save money.

Although the goal of saving $1 million for retirement seems a little farfetched, with some planning and good decisions, it can be a reality.

Learning good saving habits early in life could really help individuals in the long run.

Small business owners are in a different boat when it comes to saving for retirement.

Retirement is seen as a time to enjoy the finer things in life.

When the time has come to starting preparing to leave the workforce, getting everything in order is a good idea.

Navigating the retirement planning waters can be tricky, especially with advice coming from all directions.

Some retirees find fulfillment in continuing to work after retirement.

A lot of people go through a downsizing period when retiring. Downsizing can include your living space, family heirlooms and other items.

There are many choices when deciding how to invest your self-directed IRA.

Each generation faces differing events and challenges that impact their investment strategies. Which type of investor are you?

Over time, real estate investments have afforded many people the powerful combination of appreciation and income.

Paradigm Commercial Capital Group is a nationally recognized leader in equipment lease and finance.

The growing senior population in the United States gives rise to some interesting allowable investments.

401(k) plans, whether company-sponsored or not, can be great vehicles for retirement saving.

There are many small companies and start ups short on money and eager to find investors.