CHARLOTTE, NC / ACCESSWIRE / March 19, 2021 / What can an individual investor do to avoid common pitfalls when signing up for a Self-Directed IRA? A recent post published at the American IRA website deals with this specific subject, letting investors who are considering a Self-Directed IRA know what to learn before getting started. Although the Self-Directed IRA administration firm notes that many investors are able to figure out the Self-Directed IRA with little problems, the post is designed to help people considering a Self-Directed IRA for the first time.
In the article, the Self-Directed IRA administration firm tackles such concepts as what it means to avoid prohibited transactions. Prohibited transactions refer to those invalid transactions that are not allowed within a retirement account-specifically, the types of transactions that might be of some personal benefit to the account holder. Because retirement accounts are set up to be separate from personal accounts, it is vital for investors to understand these concepts before beginning investing with a Self-Directed IRA.
The post details what prohibited transactions refer to, and how investors might be able to avoid them. One simple rule of thumb is for investors to avoid working with "disqualified persons," or people the account holder personally knows. For example, an investor who purchases a piece of real estate with an IRA and then rents that real estate to a family member is engaging in a prohibited transaction outside the bounds of a retirement account.
"This post highlights how easy it can be to understand a Self-Directed IRA," said Jim Hitt, CEO of American IRA. "But it's also important for investors to know exactly what will be involved. Taking control of one's own financial future is not something that happens overnight. But it is a powerful way for investors to feel like they have a greater say in their own financial destiny."
For more information, visit the post at www.AmericanIRA.com or call 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 $500 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."
SOURCE: American IRA, LLC