ASHEVILLE, NC / ACCESSWIRE / July 10, 2020 / If an investor has chosen a Self-Directed IRA, how many options will they have to fund that account? That is the question posed-and answered-at a recent post at the American IRA blog. American IRA, a Self-Directed IRA administration firm based in North Carolina, wrote about three distinct funding opportunities: contributions, rollovers, and transfers.
The post went on to describe each individual funding option. For example, direct contributions are simple. In a Self-Directed Roth IRA in 2020, an investor could contribute up to $6,000 to the Roth IRA, or as much a $7,000 at the age of 50 or older. In this way, it is possible for investors to begin their investment process simply by putting after-tax money into the account and putting the money to work.
A transfer is another funding method that works by directly moving money from one account to another. This is an ideal way to fund a new account, but it is contingent on specific rules being met. For example, an investor would not be able to transfer before-tax money currently in a Traditional IRA to a Roth IRA.
In a rollover, the post explains, an investor temporarily takes possession of the funds, with a specified time limit to deposit them in the new account. This is an indirect funding method, but it is one of the most popular ways to move retirement funds from one account to another.
In addition to the three direct funding opportunities available to investors, American IRA noted that there is also the possibility of using non-recourse loans with a Self-Directed IRA. For example, an investor who holds a Self-Directed IRA can use a non-recourse loan to fund a real estate purchase. In a non-recourse loan-a loan secured by collateral, according to Investopedia-the lender cannot continue to seek out additional compensation from the borrower in the event of a default.
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
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