Do You Have an IRA? Here are a Few Important Facts You Need to Know


Self directed 401k

An Individual Retirement Account, or IRA as they are more often referred to, are a form of “individual retirement plan”, provided by many financial institutions. They provide tax advantages for retirement savings in the United States. An individual retirement account is a type of “individual retirement arrangement” as described in IRS Publication 590, Individual Retirement Arrangements (IRAs). The term IRA (which is used to describe both individual retirement accounts and the broader category of individual retirement arrangements) encompasses an individual retirement account; a trust or custodial account set up for the exclusive benefit of taxpayers or their beneficiaries; and an individual retirement annuity, by which the taxpayers purchase an annuity contract or an endowment contract from a life insurance company. If you need to hire IRA custodians to help you, here are a few more important facts you need to know before you invest in self managed IRAs.

Did you know that an estimated 64.6 percent of IRA funds in the United States are traditional IRA accounts? As these types of accounts continue to evolve, this will undoubtedly change, but for the moment, hiring traditional IRA custodians is going to be a lot easier.

An estimated 12 percent of IRA accounts in the United States are “Roth” IRA funds. Roth IRA are contributions which are made with after tax assets. This means that all transactions within the IRA have no tax impact, and withdrawals are usually tax free. This particular type of IRA was named for Senator William V. Roth, Jr. The Roth IRA was introduced as part of the Taxpayer Relief Act of 1997.

In 2012, 8 out 10 self directed IRAs account owners in the United States also had employee sponsored retirement plans. As the cost of living in the United States continues to rise, these types of retirement savings plans will only continue to grow in popularity. Even if you are looking into self employed retirement, contacting IRA custodians now can be a great way to help you later on.

In 2012, 76 percent of Americans that made IRA withdrawals were over the age of 55.

A Self Directed IRA allows for investments in active businesses for those investors that would like to see direct cash inflow. A self directed IRA is also one that permits the account holder to make investments on behalf of the retirement plan.


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