The Internal Revenue Service (IRS) continually updates and amends its rules and regulations for Self-Directed IRAs. This infographic outlines and explains important IRS rules that every Self-Directed IRA investor should know. Learn about allowable and excluded investments, prohibited transactions, disqualified…
IRS Rules and Compliance
The IRS rules regarding the use of IRA or 401(k) funds for non-traditional investments are intended to ensure that all benefits from such activities accrue to the plan, rather than the individual. Put simply, because this money is given special, tax-sheltered status, you cannot personally benefit, other than by knowing that you are growing your retirement savings.
Understanding the rules governing IRA funds is critical to your ability to get the most out of your plan without creating exposure to tax penalties, but this can be a difficult prospect. IRS guidelines are not exactly notorious for clarity and easy comprehension. At Safeguard Advisors, one of our key roles is to work with you to make sure you are fully informed about the rules and how they apply to your intended investments.
This section of our blog is designed to help you navigate the often complex IRS rules and compliance guidelines and ascertain how they will affect your self-directed IRA or solo 401(k) plan investment activities. Articles in this category cover topics such as how to avoid prohibited transactions, effectively managing your required minimum distributions (RMDs), handling Roth IRA conversions, and more.
For both traditional and self-directed IRAs, a will cannot determine beneficiaries. That’s because each IRA includes a beneficiary designation, set by a form you fill out upon opening the account. This designation supersedes any information in a will. Considering this…