- The property is deeded and recorded in the name of your IRA; therefore the IRA is the owner.
- All expenses associated with the property, i.e. repairs and maintenance, HOA dues, property taxes, etc. must be paid from IRA funds.
- If you are utilizing the services of a Property Management Company the account must be set up in the name of your IRA with our custodial tax id for rental income reporting.
- All income generated from the property must be deposited and credited to your IRA account. An IRA owner may then take a distribution from their IRA if they choose.
- There can be no co-mingling of IRA funds and your personal funds. Your IRA may not “reimburse” you personally for an invoice paid with personal funds. This becomes a taxable distribution.
Precious metals are a great way to diversify your portfolio, but think about looking beyond gold bullion to black gold—oil. Global demand for oil will only continue to increase. While the U.S. consumes more oil than it produces, the potential for increased domestic production on American soil is promising. New technology offers the promise of tapping previously unreachable oil fields. North Dakota has been producing record-setting oil output month after month and reaping the rewards of low unemployment and enormous profit. Meanwhile, the booming production at the shale fields in Texas jumped by more than a third over the last year and production now outpaces even that of North Dakota.
The U.S. is in the midst of an oil renaissance, which makes for very profitable investment opportunities. For example, the Koch Pipeline Company just proposed the construction of a new pipeline that would carry crude oil from North Dakota to Illinois. In addition to profit, there are tax incentives for investment in oil and gas. Where some ventures may seem risky or the potential for profit unlikely, investing and oil and gas could be a hedge against high-risk investments and inflation. The revenue from a consistently producing well may pay off for many years.
Various ways to invest in the oil industry include:
- Drilling companies
- Land where drilling is taking place
Whatever you choose within the oil and gas industry, your self-directed IRA will act as a shareholder and potentially garner great profit.
How it works:
- Commit to an oil or gas company on a particular project
- Open up a new account with Mountain West IRA
- Complete the necessary paperwork for investment
- Mountain West, as the custodian of your self-directed IRA, will send investment funds to the oil or gas company
- Earn revenue from oil and gas profits
Set up your self-directed IRA with Mountain West IRA today so you can invest in the oil or gas industry.
Mountain West IRA will be expanding our business to the states of Washington and Florida.
Beginning in September 2013 we will be traveling to both of these states and marketing through various real estate investment associations. We will have monthly updates on cities where we will attend and / or having speaking engagements.
We always appreciate your business and referrals and would love to assist anyone you know in their self-directed IRA and individual 401(k) needs. Want to schedule an individual appointment to get your self-directed IRA started? We have a limited number of appointments available in each location. Contact Mountain West IRA to get on the schedule.
Here is a list of our attendance scheduled at organizations for September.
- September 10th 11:30am: Boise Chamber of Commerce Owner’s Luncheon, Lisa Galane, President
- September 9th 6:00 pm: Real Estate Investors Association, 900 Bellevue Way, Bellevue, WA, Jon A. Galane, CEO
- September 26th 7:00 pm: Real Estate Association of Puget Sound, 100 112th Ave. Bellevue, WA, Jon A. Galane, CEO
- September 4th 12:00 pm: Sarasota REIA, Bee Ridge and McIntosh, Sarasota, FL, Jon A. Galane, CEO
- September 4th 6:30 pm: Tampa Bay REIA, 40949 US 19 North, Tarpon Springs, FL, Jon A. Galane, CEO
- September 5th 6:00 pm: Jax REIA, 103 Century 21 Dr. Jacksonville FL, Jon A. Galane, CEO
- October 31st 11:30 am: North Port Real Investors, 14132 S. Tamiami Trail, Sarasota, FL, Jon A. Galane, CEO speaking
Join us and find out more about our business. We look forward to serving your needs in the future.
A defined benefit plan promises a specified monthly benefit at retirement. A defined benefit plan can be rolled over to a self-directed plan, but typically only if you are no longer an active participant in the plan. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service — for example, 1 percent of average salary for the last 5 years of employment for every year of service with an employer. The benefits in most traditional defined benefit plans are protected, within certain limitations, by federal insurance. When you roll over a retirement plan distribution, you generally don’t have to pay tax on it until you withdraw it from the new plan. By rolling over, you are saving for your future and your money continues to grow tax-free.
If you don’t roll over your distribution, you will pay tax on the amount received (other than qualified Roth distributions) and possibly an additional tax on early distributions.Keep in mind that the portion of a distribution from a traditional IRA or pre-tax retirement plan account that is not rolled over is generally taxable in the year of the distribution. If you are still employed by the plan provider, you will need to check with your plan administrator to see if the plan allows for “in-service” distributions, which allow employees to withdraw funds from their workplace retirement plan without penalty. If the answer to that question is yes, you would be able to perform a direct rollover to a self-directed IRA. By moving funds to your self-directed IRA, you can take advantage of greater choice in investments.
Generally, to roll over your retirement plan or IRA distribution:
- Ask the plan administrator or IRA trustee to transfer the amount to another plan or IRA, or
- Have the distribution paid to you and contribute it within 60 days to another eligible retirement plan.
If the distribution from the qualified plan or IRA is paid to you, you have 60 days from the date of receipt to roll it over to another qualified plan or IRA. If you make a tax-free rollover of a distribution from an IRA, you generally cannot make another rollover from the same IRA within a one-year period. You also cannot make a rollover from the IRA to which the distribution was rolled over. If you receive an eligible rollover distribution from your plan, your plan administrator must provide you with a notice informing you of your rights to roll over the distribution and must facilitate a direct rollover to another plan or IRA. Contact Mountain West to roll over your defined benefit plan to a self-directed IRA and take advantage of the many investment opportunities self-directed IRAs afford you.
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.
Some of the options available for the purchase of real estate investment properties within a self-directed IRA include:
•Domestic or international real estate
•Residential or commercial real estate
•Single family or multi-family units
Use of real estate within your self-directed IRA does have some restrictions. The owner of the self-directed IRA and members of their immediate family cannot personally use or benefit from the real estate. For example, the owner of the self-directed IRA may not purchase an investment property with funds from their self-directed IRA for their child to live in while attending college. Another important guideline to note: money earned from the investment properties must go directly back into the IRA account used to purchase the property and expenses for the property must also be paid from the account.
Although the rules and guidelines for self-directed IRAs may seem confusing at first, the professionals at Mountain West IRA specialize in facilitating the management of self-directed IRAs and are available to guide investors through the process. Contact Mountain West IRA to schedule an informational appointment.