CHARLOTTE, NC / ACCESSWIRE / January 9, 2021 / Recently, Self-Directed IRA administration firm American IRA took to its blog to explain the various retirement investing rules present within a Self-Directed IRA. Pointing out that these rules exist for all retirement accounts, but that they're something that Self-Directed IRA investors in particular have to watch out for, the blog post pointed out issues such as disqualified persons and prohibited transactions-and what these terms mean for retirement investors.
According to the Self-Directed IRA administration firm, one of the most important things for investors to understand is the nature of prohibited transactions. Different prohibited transactions might include purchasing a life insurance policy within a retirement account, for example, or collecting fine art within a retirement account. Because these are not appropriate retirement assets as outlined by the IRS, even Self-Direction does not make it possible for investors to hold these types of assets within a Self-Directed IRA.
Some assets by their very nature, according to the post, are not appropriate for retirement investing. For example, while precious metals are an acceptable asset in retirement investing, there are limitations to this, as some precious metal products may be too difficult to grade to be appropriate within a retirement account.
"With this post, we at American IRA wanted to show people that there are certain rules with the Self-Directed IRA," said Jim Hitt, CEO of American IRA. "And while there is a tremendous amount of freedom that occurs when investors approach things this way, there are also some limitations that investors need to know if they're going to avoid trouble."
The post also talks about disqualified persons, who would be prohibited from transacting from a retirement account even in the case of legitimate retirement assets being used. More information is available in the post, which details who may count as a "disqualified person."
"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