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What is an IRA?

This is a program for an individual to develop his or her own retirement account. The earnings of the account grow tax-deferred until withdrawn or may be completely tax-free.

 

What are the advantages of opening a self-directed IRA?

In contrast to other types of IRAs, a self-directed IRA (SDIRA) offers investors the ability to invest in non-exchange traded assets, such as real estate, precious metals, and even some types of business partnerships.

 

Who can open an IRA?

Everyone can open an IRA. Whether you have a retirement account through an employer or on your own, an IRA Services Trust Company self-directed IRA can offer you new and different opportunities to invest, opportunities not available through IRAs that are not self-directed. With a few exceptions, anyone interested in taking control of their financial future or interested in taking an active role in managing their money should open an IRA Services Trust Company SDIRA.

 

What kinds of IRAs does IRA Services offer?

We offer Traditional IRAs, Roth IRAs, SIMPLEs, SEPs and Coverdell Educational Savings Accounts.

  • Contributions to a Traditional IRA may be deductible. Earnings are tax deferred and withdrawals are taxable
  • The Roth IRA does not allow deductible contributions. Earnings are tax deferred and if held for five years or more, the withdrawals at retirement are tax-free
  • Employers use SIMPLE and SEP accounts to provide retirement accounts for their employees, these allow for employer contributions
  • Coverdell ESAs are setup for the elementary, secondary and post-secondary educational expenses of students. Contributions are not deductible and are limited to $2000 per year until the student turns 18.

 

What type of IRA is best for me?

We recommend that you talk to your advisor to determine whether a Traditional, Roth or other IRA is best for you. If you have a pension plan where you work, your contributions will generally not be deductible, making the Roth IRA more advantageous, since the distributions are tax-free.

If you do not have a pension plan, you may find the deductibility of contributions in the Traditional IRA more advantageous.

 

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