Navigating the Landscape of Roth Contributions to SEP and SIMPLE IRAs: What We Know So Far As the financial world evolves, so do the tools and strategies available for retirement planning. One of the more recent developments in this arena is the inclusion of Roth contributions to Simplified Employee Pension (SEP) and Savings Incentive Match Plan for Employees (SIMPLE) Individual Retirement Accounts (IRAs). This addition opens up new avenues for individuals to build tax-efficient retirement savings. However, navigating the specifics of this provision can be complex, especially given the current ..read more

Are you looking for a tax-efficient strategy to access your retirement funds before reaching the age of 59½? Enter the Roth Conversion Ladder – a multiyear plan designed to unlock your retirement savings without penalties and pave the way for tax-free withdrawals in your golden years. Let’s delve into the intricacies of this powerful financial maneuver and explore how it can benefit you on your path to financial independence. Understanding the Roth Conversion Ladder The concept behind the Roth Conversion Ladder is simple yet powerful. By systematically converting funds from a traditional IRA t ..read more

The last wave of baby boomers, born between 1959 and 1964, approach the age of 65.  As a result, a significant shift is set to occur in the U.S. economy. Dubbed “peak 65”  This demographic cohort is poised to retire en masse between 2024 and 2030, with implications reaching far beyond just individual households. The Impact on the Economy Currently, peak boomers make up approximately 10% of the U.S. workforce. Their departure from the workforce within the next decade will create a ripple effect across various sectors of the economy. Because of this, millions of job vacancies will be l ..read more

Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. Typically, you must commence withdrawals from traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts once you reach age 72 (or 73 if you hit this milestone after Dec. 31, 2022). Transitioning to the recent developments, on April 16, 2024, the IRS issued Notice 2024-35, offering vital guidance and relief regarding certain provisions of after-death required minimum distribution (RMD) rules outlined in Code section 401(a)(9). According to these rules, RMDs must comm ..read more

Jeff Dixon, MBA, CISP, SDIP If you have earned income from a W-2 job or self-employment, you are eligible to make an annual contribution to a Self-Directed IRA. However, there are different types of IRAs, each with differing contribution limits. Occasionally, someone will contribute more to their IRA than they were eligible for. This situation calls for the removal of an “Excess IRA Contribution”. Correcting an Excess Contribution: Individuals can handle excess contributions in different ways, depending on when they make the correction. An IRA owner may choose to recharacterize the contribut ..read more

If you’ve ever pondered over the realm of self-directed retirement accounts, you’re not alone. The concept can seem intricate, but fear not, as we’ve compiled a set of frequently asked questions to illuminate this financial landscape. What is the Purpose of these FAQs? These FAQs aim to educate you on your responsibilities as the owner of a Self-Directed Individual Retirement Account (SDIRA) and the role of a custodian/administrator. What is an SDIRA? A Self-Directed IRA empowers you to handpick and manage the assets within your retirement account, spanning from private equity to real esta ..read more

Offering retirement benefits to employees isn’t exclusive to large corporations. Small businesses can also pave the way for their team’s financial security through SIMPLE IRA plans. Established in 1997, the Savings Incentive Match Plan for Employees (SIMPLE) IRA Plan offers a streamlined approach for small employers to provide retirement benefits, ensuring their workforce receives essential savings opportunities for their golden years. Qualifying Criteria for Establishing a SIMPLE IRA Plan: To set up a SIMPLE IRA Plan, a business must meet the following criteria: Sole Retirement Plan: The SIM ..read more

So, you’ve set your sights on becoming a passive real estate investor? Well, congratulations are in order! After all, a staggering 90% of the world’s millionaires have utilized this very avenue to amass their wealth. However, there’s a catch: you’re tied up with a day job, leaving you with limited time to dedicate to scrutinizing properties, managing tenants, and negotiating deals. Enter the Self-Directed IRA, a game-changer in your quest to save for retirement while diving into real estate investments tax-free (Roth) or tax-deferred. Now, let’s explore a range of strategies for passive real e ..read more

Navigating Accredited Investor Status in 2024: Exploring Evolving Criteria and Future Prospects In the realm of investments, the designation of “accredited investor” carries substantial significance. It denotes individuals or entities deemed financially sophisticated and capable of understanding and managing the risks inherent in certain investment opportunities. But what exactly qualifies someone as an accredited investor? And what changes are looming on the horizon for this esteemed status? Understanding the Accredited Investor Landscape The Securities and Exchange Commission (SEC) has outli ..read more

Self-directed IRAs offer a distinct advantage: the ability to diversify beyond traditional stocks, bonds, and mutual funds. By harnessing the power of alternative assets, investors can potentially enhance their portfolios and secure their financial future. One such alternative investment avenue gaining traction is private placements.  Private placements present lucrative opportunities for those willing to explore beyond Wall Street. What is a Self-Directed IRA? A self-directed IRA (SDIRA) empowers you to take control of your retirement funds and invest in a broader spectrum of assets.&nbs ..read more