Checkbook IRAs: Don’t get too involved with your account

BELLEVUE, Wash. - March 22, 2013 - PRLog -- Self-directed IRAs are a great way for investors to get in the driver’s seat and take control of the wheel with their retirement future. Many people have dreams of traveling to exotic locations to see the great wall of China or the pyramids of Giza and they want a way to take control of their future without becoming subject to taxes that are imposed on those who invest without the tax sheltered accounts designed for the retirement savers. To those people we say, “take control of your retirement future with a self directed IRA.” However, there are a few key components that you need to understand about your retirement accounts and that is not to get too involved.

Don’t get too involved

Self directed IRAs are designed to only benefit the retiree after he or she has declared retirement. So you cannot invest in your own business that you are managing. You also are not allows to manage your apartment complex that you own through your IRA. Once you begin crossing those lines you become subject to a 10% penalty plus taxation on the dollars you have withdrawn. So don’t get up close and personal with your investments, in fact, it is best to leave them as investments and not turn them into business opportunities.

Don’t get your family involved

We have all heard that if you want to keep your family close then don’t get involved with investments with your family, well this is another reason not to get involved with your family. Family members are considered disqualified persons so if you get them involved with your IRA’s investments, whether it is in their businesses or investing in the same opportunities with your IRAs or personally with an IRA then you are crossing the line that will result in penalties and taxation. Not a good situation to be in.

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