CHARLOTTE, NC / ACCESSWIRE / July 25, 2020 / If an investor has previously-existing retirement funds and wants to fund a Self-Directed IRA, how does it work? That was the precise question recently answered at a post at American IRA, a Self-Directed IRA administration firm based in Asheville, North Carolina. In the post, American IRA noted that there are two usual ways of using pre-existing funds to fund a Self-Directed IRA: the transfer and the rollover.
Although there are typically three ways for investors to put funds within a retirement account (the third way being through direct contributions), the post was focused on using the existing funds within a retirement account. That means using either a transfer or a rollover. The post went into detail about the differences between the two.
A transfer is what happens when an individual moves their IRA funds between institutions, such as transferring between two similar accounts-such as a Roth IRA to a Roth IRA with another institution. A transfer is then tax-free, the post notes, "assuming that there is no distribution paid out to you."
For the IRA rollover, that occurs when someone either partially or fully moves funds to an IRA. For example, an investor with funds already present in a 401(k) account through an employer could roll it over into a Self-Directed IRA. The post notes that there are some potential tax implications for a rollover that investors will want to consider before trying one of their own.
"Some people believe that they can't start out with a Self-Directed IRA because they didn't open one when they were in their 20s," said Jim Hitt, CEO of American IRA. "But this post helps explain that there are different ways to fund a Self-Directed IRA and they don't all have to come from direct contributions."
The American IRA website also contains more information about funding methods for Self-Directed IRAs. To view those-as well as the post mentioned here-visit www.AmericanIRA.com. Interested parties may also contact American IRA at 866-7500-IRA.
About: American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA."
SOURCE: American IRA, LLC