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Self Directed IRA Rollovers-Confusing But Important

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Has your financial advisor suggested a self directed IRA rollover because your setting up a self directed IRA?

IRA rollovers. It’s enough to get anyone to sleep.

If you’re setting up a self directed IRA chances are you’ll need to do a self directed IRA rollover. It’s not as hard as you’d think and there are some extremely good reasons to do a self directed IRA rollover.

Lets say you have a tax deferred employer’s retirement plan. Then you get another job, so you’ve got another employer, so you have another employer retirement plan. And so on. And do you trust your employers fund to invest for the absolute returns for your retirement?

You need a self directed IRA and you need to rollover each of your employer funds into your new self managed IRA.
You see you can’t just withdraw the funds in your employer plan and deposit them into your new IRA, because in your employer plan those funds are tax deferred. You need to protect the tax advantaged status of your investment funds, and by doing a proper rollover into your self managed IRA you protect those tax deferred funds from attracting tax.

There are a number of advantages of having our own self managed IRA. Firstly it should give you a much wider range of investment options than traditional IRAs or employer retirement plans. Many traditional IRA custodians allow only a limited range of investments, and often direct those investments to their own products instead of other investments that may pay much better.

For example real estate investments. With your own self managed IRA you should be allowed to invest your retirement funds in real estate. That’s most unlikely with a traditional IRA with a traditional custodian like a bank, say. You have far more control over your own funds, and distributions, and investing options.

So you need to consider carefully how you plan to invest for your retirement and select the best vehicle to do so. A self directed IRA is the best vehicle to invest wisely for the long term, to provide yourself with a solid pension and comfortable retirement in your later years.

And make sure you invest your IRA in real estate. That’s the single best investment of all, for an IRA or for that matter any other investment. Even in todays hard times there are some fantastic IRA real estate investment opportunities.