CHARLOTTE, NC / ACCESSWIRE / April 5, 2021 / The IRS limits the types of property that an investor can hold within a Self-Directed IRA. According to a recent post at American IRA, there is not only good reason for this, but it is important for investors to understand why. According to the post, the U.S. Congress created retirement accounts to be separate tax-protected accounts specifically for the purposes of retirement. And while a Self-Directed IRA makes it possible to hold a wide variety of nontraditional retirement assets within a retirement account, there are certain types of property that are inherently not "retirement investments."
These are rare enough that the IRS specifically prohibits just a few types of assets from being held within an IRA, rather than specifically limiting what can be held within a Self-Directed IRA. What can't be held within a Self-Directed IRA? The post goes into greater detail, explaining the key property. One example is that of an alcoholic beverage collection, such as a fine wine collection. A fine wine collection would be considered a "collectible," or a series of collectibles, which are prohibited from use within a retirement account.
Fine art is another example of a type of property that investors cannot hold within a Self-Directed IRA. Lots of problems with fine art collecting-such as subjective value-make it nearly impossible to keep accurate records as to the value of the account. This complicates things, which is why fine art is prohibited from entering a retirement account.
Other things that an investor cannot own within the protections of a retirement account include life insurance and tangible collectibles that are difficult to track.
"Investors know that a Self-Directed IRA opens up all sorts of nontraditional retirement possibilities," said Jim Hitt, CEO of American IRA. "But this post points out that there are plenty of things that an investor shouldn't hold within a retirement account if they want to keep that account in good standing and avoid penalties."
Nontraditional assets that investors can hold within a retirement account include real estate, tax liens, certain types of precious metals, and even private stock and private notes.
For more information, be sure to visit the website at www.AmericanIRA.com or call American IRA by dialing 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