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A collection of our articles on various tax aspects.  We cover Tax Representation subjects (collections, liens, levies, penalty abatement), individual tax situations, and business taxes.

SELF-DIRECTED IRA

by | Oct 28, 2024 | Tax Basics | 0 comments

Take Control of Your Retirement with a Self-Directed IRA: A Guide for Small Business Owners

Introduction:

Planning for a secure retirement is essential for small business owners. A self-directed IRA offers a unique way to diversify your investments and take control of your retirement savings. This article explains the concept of self-directed IRAs and their benefits. Consulting a tax professional, like an Enrolled Agent, is crucial to ensure informed decisions.

Understanding Self-Directed IRAs

A self-directed IRA allows for a broader range of investments beyond traditional options like stocks and bonds, including real estate and private securities. Here’s what you need to know:

Custodians and Trustees

All investments are held within an account administered by a custodian or trustee, ensuring compliance with IRS regulations.

Investment Diversification

Self-directed IRAs provide the freedom to invest in alternative assets, potentially maximizing returns and reducing portfolio risk.

Contribution Limits

Annual contribution limits are set by the IRS, with additional catch-up contributions available for individuals 50 and older.

Important Considerations:

  • Early Withdrawal Penalties: Withdrawals before age 59½ may incur penalties.
  • Increased Responsibility: Investors must thoroughly research potential investments.

Consultation with a Tax Professional

To navigate the complexities of self-directed IRAs, consulting a tax professional is essential. An Enrolled Agent can help ensure your investment decisions align with your retirement goals.

Summary

A self-directed IRA offers small business owners the opportunity to diversify their retirement savings. By understanding the benefits and consulting a tax professional, you can effectively manage your investments

Ready to explore the benefits of a self-directed IRA? Contact our team for expert assistance in setting up and managing your retirement plan.

Keywords: Self-directed IRA, small business owners, retirement savings, investment diversification, custodians, tax professional guidance

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