Protecting Retirement Assets

Protecting Your Retirement Assets in a Self-Directed IRA

A self-directed IRA is an excellent option for the confident investor who is ready to take control of his or her financial future. Many investors are unaware that the IRS permits an IRA owner to choose from a wide variety of commonly permitted investments, which go far beyond the usual mutual funds offered read more >

Adler Decison

ERISA Opinion No. 2000–10A
The issue was whether allowing the owner of an IRA to direct the IRA to invest in a limited partnership in which the IRA owner and his relatives are partners would give rise to a PT.

The transaction at issue involved a family partnership (the “Partnership”), a general partnership that was an investment club. Leonard Adler (“Adler”) read more >

Real estate entrepreneur pays obscene taxes after typical “Checkbook LLC” arrangement blows up; Some notes on “dealer” status & other flipper tax issues.

Author: John Hyre

Quick Synopsis

An engineer from Phoenix made a living doing “Phase I” and similar types of environmental impact reports for purchasers of commercial properties. When the crash came, his services business declined. He started flipping properties and did quite well with it.

Pursuant to the “advice” of a Check Book LLC promotor, the promotor set up an IRA-owned LLC for read more >

Lesson From The Tax Court: How To Mess Up Your Checkbook IRA

By Bryan Camp

The idea that freedom means control over your own destiny s arguably the most defining characteristic of American culture.  It is most certainly the basis on which various companies promote “checkbook IRAs.”  If you Google that term you will find a gaggle of companies urging people to take full control of their retirement funds, to free themselves from restrictive read more >

JOBS Act – Changing the Way Private Equity is Raised For Real Estate Equity & Debt

By Gene Trowbridge, Esq.

On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startup (JOBS Act), which amends the Securities Act of 1933 and is designed to facilitate capital formation for small businesses. This article highlights Titles II, III and IV; three important areas of the JOBS Act, and our opinion as to how these changes will read more >

IRS Publication Links

In this article, you wil find links to the frequently used IRS publications that you may need if you self-direct the funds in your IRA.

To access any of the IRS documents, please click the link below:

IRA Publication 590: Individual Retirement Arrangements (IRAs)
IRS Publication 560: Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
IRS Publication 969: Health Savings Accounts read more >

Investing in Real Estate With a Self-Directed IRA

Investing in real estate is one of the most popular ways to build wealth in a self-directed IRA. Real estate investing is an excellent option for people who want to use their personal knowledge to diversify their retirement savings accounts. Diversification is one of the keys to protecting retirement assets, and property can be a particularly lucrative self-directed IRA business read more >

Coins in IRA Owner’s Possession Were Taxable Distributions

From TaxNotes

Andrew McNulty et al. v. Commissioner



Filed November 18, 2021

Each P established a self-directed individual retirement account (IRA) under I.R.C. sec. 408 and directed assets held in the IRA to invest in a single-member limited liability company (LLC). P-W was read more >

Appropriate Checklists For Year-End Tax Planning

By David M. Warrick, CFP

What are appropriate checklists for year-end tax planning?

Tax planners often develop checklists to guide taxpayers toward year-end strategies that might help reduce taxes. Typically, suggestions are grouped into several different categories, such as “Filing Status” or “Employee Matters,” for ease of reading. When year-end approaches, it might be wise to review each suggestion under the categories read more >

511 Imposition of tax on unrelated business income of charitable, etc., organizations

(a) Charitable, etc., organizations taxable at corporation rates.

Imposition of tax. 
There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512 ) of every organization described in paragraph (2) a tax computed as provided in section 11 . In making such computation for purposes of this section , the term “taxable income” read more >

Things to Avoid

The Roommates

Joe and Mary are married and each of them has an IRA. They decided that a single family rental property would fit into their retirement portfolio.

They both had enough money to make the purchase individually, but they decided that they would like to have income for both IRAs at the same time. They completed the necessary documentation to have read more >

Tax Planning For Form 1040

What is tax planning for Form 1040?

If you are an individual taxpayer who completes federal income tax Form 1040, you should be aware of a number of tax-planning opportunities that could lower your tax bill. Topics you should review include your selection of a filing status, the tax calculation rules, available deductions and exemptions, available tax credits, year-end tax planning read more >

What is Year-End Tax Planning?

By David M. Warrick, CFP

As the end of the tax year approaches, you can probably get a rough idea of how much you’ll owe in taxes. To lower your tax bite, it is wise to take certain steps at year-end. Numerous strategies exist to help you, including reviewing professionally developed year-end tax checklists, performing a marginal tax rate analysis to read more >

How to Pay for Education Expenses With Tax-Free Dollars

Many people are under the mistaken impression that a Roth IRA is the only type of self-directed account from which tax free distributions can be taken.

By H. Quincy Long

Many people are under the mistaken impression that a Roth IRA is the only type of self-directed account from which tax free distributions can be taken. However, distributions from Health Savings Accounts read more >

Roth Conversion: Tax Free Growth, Tax Free Withdrawals

Roth 101 – The Basics of Conversion

When the Roth IRA was created in 1997, it was a small footnote in the world of Pensions and 401(k)’s. Fast forward 20 years, and the Roth is on everyone’s mind. The big question; Should I CONVERT my Traditional IRA to a Roth?

There are 3 main questions to ask yourself about conversion.

First, when will read more >

The Savers Tax Credit — How to get up to $2,000 FREE from the U.S. Government

Tax time is coming, and many of you are considering whether or not to make a 2007 contribution to your Traditional or Roth IRA. I have good news! If you are at least 18 years old, you are not a full-time student, you are not claimed as a dependent on.

By H. Quincy Long

Tax time is coming, and many of you read more >

7 ways to help recession-proof your finances

These articles are not intended as investment or financial advice. Before making any investment decision, talk to your financial, tax, or legal advisers.


By: Sarah Foster

* Please See full article.*


At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our read more >

College Savings Plan Explained

From Center for Online Education

An aggregate, college tuition has risen an astonishing 79.5% in the last decade ― nearly twice the growth rate of medical care during the same period and almost three times the increase of the general consumer price index. Textbook prices have also increased by a similar margin between 2003-04 and 2013-14. According read more >

Everyone Wants to Know How To Reduce Their Taxes

By David M. Warrick, CFP

Election Day is almost here, and taxes are taking center stage in this campaign. We’re not here to tell you how to vote. But we want you to know that The Tax Reduction Network is following the race with an eagle eye. Our goal is to help you make the most of whatever changes eventually come read more >

Tax Consequences of Business Formation

What are the tax consequences of business formation, in general?

When starting a business, you must consider a number of factors. One very important factor is taxation. Although business tax planning is a complicated area, the first step is to understand the tax consequences when the business is formed. Typically, the business owners will transfer cash or property read more >

Retirement Planning – You Owe it to Your Family

By Carl Fischer

Retirement planning is more important than ever before in American history. Studies have shown that only one third of affluent families have been able to transfer and grow the family fortune into the next generation. Life expectancy has dramatically increased.  At age 65, a man has a 50% chance of living to 85, and a woman to 88.  read more >

The Basics of Health Savings Accounts (HSAs)

What Is a Health Savings Account?

A health savings account (HSA) is a tax-exempt trust established to pay qualified medical expenses incurred by eligible individuals enrolled in a High Deductible Health Plan (HDHP). HSAs have numerous tax advantages for both employees and employers, and are an important part of retirement planning. For those who qualify, an HSA is an excellent tool read more >

Self-Directed IRA Saves Family Finances: Win-Win-Win

By Carl Fischer

Sam and Barb both work, have two girls 7 and 9, own their home worth $225,000 and have a mortgage on their primary residence owing approximately $130,000.  Between them both they had 12 credit cards with a total balance of $50,000 at an average interest rate of 25%.  The credit cards started out with teaser rates and 0% balance transfers read more >

Why Review Your Financial Plan In 2007

A Case Study: The Discounted Notes with Participations

In this time of economic uncertainty, one of the excellent opportunities in real estate is purchasing discounted notes. This is particularly attractive when you use tax-deferred funds in your IRA or other retirement plan. The payment stream comes into your IRA and in the final analysis, on a first trust deed, the worst read more >

Net-Lease Investments

By Bob Strzalka, CCIM

With a lot of investors looking for a fixed return better than the readily available offerings in Treasuries, CDs and savings accounts, where can one look? A ready answer would be in the world of “Net Lease Investments”, also referred to as NNN or triple-net properties.

A net-leased property consists of the real estate which is owned by the read more >

Health Savings Accounts – What’s Not to Like?

By Carl Fischer

Control — you can use the HSA to pay for any qualified medical expense, as defined by the IRS.  There’s no need for preauthorization of services, unless explicitly stated by the plan.

No Use-it-or-lose-it — Unlike Flexible Spending Plans, unused HSA dollars remain in the HSA and continue to earn interest.

Flexibility — “Health Care” dollars can pay not only for items identified by read more >

Keeping Track of Expiring and New Tax Provisions

By David M. Warrick, CFP

A number of significant federal income tax provisions expired at the end of 2011, a fact that might be easily overlooked with so much attention being focused on the “Bush tax cuts” that are still in effect, but scheduled to expire at the end of 2012. New Medicare-related taxes, effective in 2013, have received surprisingly little read more >

Three Simple Reasons To Open A “Truly” Self -Directed IRA, 401K or Other Qualified Plan

By Carl Fischer

The “Truly” self directed IRA, 401K or Other Qualified plan allows you to:

Truly diversify your investment portfolio with investments you really know and understand,
Make any investment tax-free or tax deferred, and
Be in control of your financial future – Diversify your portfolio is the number one rule of all financial advisors. It adds a whole new meaning to diversification when you can add investments read more >

Ask an Accountant – Federal ID Numbers For Your IRA

Elizabeth A. Cummings, CPA

Do I need to obtain a Federal Identification Number for my IRA?

Yes; in certain situations, not only is it prudent, but it may be required. For example, you may need one when:

Purchasing any type of real estate or personal property through an LLC or directly
Purchase of an interest in a partnership, LLC or other entity required to file a read more >

My Two Favorite Deals

By Maggie Polisano

1. $3,000 turned into $53,000 –Selling a real estate contract for $50K

Reviewing the different client investments at the conclusion of the year I was able to identify 2 excellent uses of the “truly” self-directed IRA’s.

 Kate, a mother of five and a real estate agent in New Jersey, was able to grow her Roth IRA from $3000 to $53,000 in three months. read more >

The Legal Aspects of Raising Money From Private Investors

By Kim Lisa Taylor, Esq.

Question: What Securities Laws apply to raising money from private investors? 

What is the purpose of Securities Laws?

The Securities Act of 1933 was enacted in the wake of the stock market crash in the 1930s after many investors lost money to investment “promoters” (aka “sponsors” or “syndicators”) who promised returns that were never realized. The government subsequently read more >

Top Reasons to Have a Roth IRA

By Carl Fischer

The following is a summary of the top reasons people want Roth IRAs.

Tax Free income for life–All earnings in a Roth IRA are tax free with qualified withdrawals.
Roth contributions can be withdrawn at anytime, at any age without any penalty or taxation.
You can continue to contribute to a Roth after age 70 1/2 as long as you have read more >

1031 Exhanges Can Have an Upside in a Down Market

By Steve Venuti

In many parts of the country real estate prices are still declining. If you have investment property that you have owned for a long time, typically there will be large capital gain, not only from appreciation, but also from recapture of depreciation. Perhaps this property is located in one of these declining markets. On the other hand, there read more >

Take Control of Your Finances and Unlock Your IRA/401K

By Carl Fischer

As an administrator for CamaPlan Self Directed IRA, I’ve heard people complain that they have lost up to 50% of their retirement plans. Some of these people are now happy that they have some of it back. If you are happy with “hope”as a strategy then you have no need to read further. This article is for individuals who want to use read more >

Boom or Bust For Gold

By Christopher Blasi

Precious metals prices, particularly gold, have been in a period of price consolidation since the late summer. This current period has been characterized by sometimes violent price moves within a defined range. The net of this volatile action has resulted in neither a price breakout or reestablishment of a trend to either the upside or downside. How long read more >

What is the Right Thing to do in This Economy?

By Carl Fischer

The situation: Times are tough, no doubt, for many Americans. The elderly are going through their retirements faster than expected because returns are minimal and have not yet fully recovered from the 2008 recession. The banks are not lending except to a few people who meet very specific criteria. Unemployment is not getting better and the stock market at read more >

Recharacterizations & Reconversions of Roth IRAs Holding Alternative Assets

By Joe Luby

October 17th was the deadline to undo (technically “to recharacterize”) a Roth IRA conversion that was done in calendar year 2010. The law allows recharacterizations until October 15th each year, but this year the 15th fell on a Saturday so the deadline was bumped to Monday the 17th. Many IRA owners choose to recharacterize when the account value read more >

Three Reasons–at Least–to Invest in Hedge Funds

By Jack Killion

Number 1: It’s a great way to have exceptional investment managers handling your self-directed IRA and non-IRA accounts. Number 2: Same as Number 1. Number 3: Same asNumbers 1 and 2. Aren’t we all looking for exceptionally talented investment professionals to help us manage our own assets?

The simple fact is that some of the very best investment managers in the read more >

Dividing IRAs in Divorce

Most divorce agreements contain provisions for dividing marital assets. IRA accounts, because of their special tax status, must be treated differently than other types of financial assets. The following article attempts to explain how division of IRAs may be handled in the event of a divorce.

I. Statutory Framework

Section 408(a) of the Code provides, in pertinent part, that for read more >

Why You Should Consider An IRA Trust

By Philip Levin, Esq.

Individual Retirement Accounts (IRAs) were not designed by Congress to be wealth transfer vehicles. They were created to serve as a supplementary source of income for wealth accumulation purposes.

Within the past few years, the IRS has issued final regulations with respect to the tax code section that created IRAs. These regulations govern the calculation of required minimum read more >

How to Explode Your Wealth: The Power of Compounding

By Brian Adams

The Magic of Compounding

Grace Groner lived in Lake Forest, Illinois, about 45 minutes north of Chicago. After graduation, Grace was hired as a secretary at Abbott Laboratories. She worked there for more than four decades. According to the Los Angeles Times, she got her clothes from garage sales (as she never earned an amazing salary) and she lived read more >

Here’s How Self-Directed IRAs Are Different From Other Retirement Accounts

To get right to the point, they’re not that different! As far as the IRS is concerned, self-directed retirement accounts are treated exactly the same as all your other types of retirement accounts.

You know from my previous post that self-directed means you choose from a much wider variety of investments and monitor those investments yourself. That’s the case read more >

Why Your Brokerage Firm Likely Does Not Offer a True Self-Directed IRA

There are a few reasons investment management companies don’t recommend, or even offer, the option of self-directing your assets.

For starters, we’ve noticed a general lack of education about nontraditional investing among financial professionals — perhaps because it is nontraditional. It’s not entirely clear why.

Another reason is that it could cut into profits. If you’re doing most of the work and not trading read more >

What is Your Contributed Securities (LLC, LLP) Worth?

By Walter Zweifler

The good book says there is a time under the sun for everything – this applies to the valuation of limited liability partnerships, limited liability companies, closely held corporations and other securities that can be contributed to your IRA. When a business ownership interest is contributed it is imperative that you know what the contribution is worth and how read more >

Why Tax-Deferred and Tax-Free Are the Best Ways to Invest

An old bit of (good) advice is that the best way to save money is to not spend it. We usually take that to mean curbing shopping sprees, eating at home more often, and maybe using coupons. But a big part of hanging on to your hard-earned cash comes before it ever hits your bank account. Depending on your income, read more >

Is a Self-Directed IRA Right For Me?

Just like retirement planning isn’t one size fits all, self-directed investing isn’t for everyone. But it’s good to know it’s out there. Our knowledge is always expanding. Needs and opportunities pop up unexpectedly. Maybe someone shares a story that piques our interest in a new frontier. One day, it might make a lot of sense.

Folks who choose self-directed investing have read more >

Benefits of Self-Direction & Tax Advantaged Plans

By Carl Fischer

Self-direction with tax-advantaged plans provides a myriad of benefits, personally and professionally, with financial and emotional attributes.

We will first discuss the personal benefits:

True diversification
Use your expertise & knowledge

The only way to obtain “true” diversification is with a self-directed account.  Anyone who has seen the bull or bear markets on Wall Street has been a witness to the lack of read more >

Uncovering the Hidden Option of Self-Directed Investing

It’s 2019, and today, it’s all about getting ahead of tomorrow. You’re either starting to prepare for your financial future, or it’s already on the horizon.

Of course, we’ve all been warned about the fast-approaching depletion of Social Security and are on notice about a looming recession. Stashing away money feels more urgent than read more >

How to Attract Employees by Combining Investment Properties With Retirement

By James L. Maxfield, Jr.

Let’s face it. The 20th century concept embodied in the 1957 film, “The Man in the Gray Flannel Suit,” of working at one company and retiring with a pension, already was on its way out of favor by the end of the 1960s. In just a few major financial publications, on average, a dozen articles are read more >

12 Strategies to Build Your Roth IRA With Smaller Real Estate Investments – Part II

By James L. Maxfield, Jr.

This article is a continuation of 12 Strategies to Build Your Roth IRA With Smaller Real Estate Investments – Part I.

Strategy 7: Working with Builders or Developers

Builders and small developers often have extra lots in inventory that probably won’t be built on for several years. IRA investors can approach builders to help them out in several read more >

12 Strategies to Build Your Roth IRA With Smaller Real Estate Investments – Part I

By James L. Maxfield, Jr.

After a recent seminar presented to the Kentucky Real Estate Investors Association in Louisville by CamaPlan Principal Carl Fischer, real estate broker and investor James Maxfield initiated a discussion session to outline and highlight some creative strategies on how to use self-directed IRA retirement funds to grow accounts quickly. The following strategies have been used by read more >

Preparing a Will Most Certainly Cannot Wait

By Fabio Sciarrino, Esq.

We take for granted having the ability to handle our own affairs, but what will happen to our property, finances and other assets when we are gone? As an attorney, I have written a number of wills for friends, family, and neighbors. Yet I am still surprised at how many people in our community do not have read more >

The Gurus of Cash Flow Distribution

By Steven B. Morris, Sr.

Main Line Guarantee, LLC of Cherry Hill, NJ has been marketing and selling structured settlements and other seasoned cash flows to advisors and private retail clients throughout the United States since 2008. In good times and in trying times, the business of providing clients with a higher rate of return and dependable cash flows at pennies read more >

Five Things To Consider Before Buying Real Estate With A Self-Directed IRA

By Adam Bergman

The Internal Revenue Service (“IRS”) permits retirement accounts, such as an IRA, to invest in real estate and other alternative types of investments. As a matter of fact, IRS rules permit one to invest retirement funds in almost any type of investment, aside generally from any investment involving a disqualified person, collectibles, and life insurance, in the read more >

5 Advantages of Using Private Money For Real Estate Deals

By Brian Adams

Given the current economic climate, doing real estate deals presents greater challenges than before. One such challenge is having the cash to close just about any real estate deal. Traditional sources of funding are harder to come by, especially for those who have a less-than-stellar credit history. If you don’t have the money on hand to close the read more >

Tax Planning for the Self-Employed

By David M. Warrick, CFP

What is it?

According to the IRS, you are self-employed if you carry on a trade or business as a sole proprietor, as an independent contractor, as a member of a partnership, or if you are otherwise in business for yourself. You can be a full-time employee and still have self-employment income from a side job. To read more >

Does an RMD Apply to Me?

The IRS requires you to distribute a portion of funds from your traditional IRA, SEP IRA, SIMPLE IRA, or 401(k) account. This is called a Required Minimum Distribution, or RMD.

Click Here to see the latest RMD age requirement. Once you take a distribution, the funds are subject to tax and be included as income on your personal tax return. read more >

Is it Time to Buy Real Estate Again?

By Julie Hankins

“Now is a GREAT time to buy real estate,” is what we are hearing from the media these days. With mortgage interest rates hitting their all-time low within the last 6 months of 3% on a 30-year fixed, and mortgage lenders loosening their purse strings to another starving first-time homebuyer, real estate is now all the rage.

The American Dream read more >

IRA Charitable Rollover

The following information was provided on January 2, 2013 by the Council on Foundations. Please note that neither the Council nor The Rhode Island Foundation provides legal or financial advice; please consult an appropriate professional for advice tailored to your situation.

The Pension Protection Act of 2006 (PPA) permitted individuals to roll over up to $100,000 from an individual retirement account read more >

Three Advantages of Incorporation

By David M. Warrick, CFP

Incorporation is the next step in the evolution of your business. The laws for incorporation vary from state to state, but incorporating is definitely something to consider to provide protections for you and your business.

1. Liability. This is the primary issue because in a sole proprietorship, there’s no safety net between your client and his or read more >

Watch Out for Prohibited Transactions: These Are the Few Things You Can’t Buy in Your Self-Directed IRA

Self-directed IRAs allow you to invest in a whole lot more than traditional broker-managed IRAs, but there are a handful of things that are not allowed — some for obvious reasons. There are three main categories of what the IRS refers to as “prohibited transactions,” and two of them are fairly straightforward. The last category might need some explaining and examples, because read more >

Year-End Charitable Giving

By David M. Warrick, CFP

As the holiday season approaches, with the end of one year and the start of another, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. Charitable giving can be enhanced using income tax deductions, and so it can be read more >

Owning and Rehabbing IRA-Owned Properties

Many people assume IRA portfolios consist exclusively of stocks, bonds and comparable assets. They may not know they can diversify their IRA by investing in real estate.

Investing in real estate with your IRA isn’t for everyone, but many people find it a wise investment. If you’re interested in investing in and rehabbing one or more properties as part of your read more >