Retirement Plans

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The Basics

Discover the Benefits of a Tax-Free or Tax-Deferred Entrust Self Directed IRA

Realize Higher Returns on Investments

Retirement accounts provide the opportunity to save money for the future in a tax-free or tax-deferred environment. However, an Entrust self directed IRA or real estate IRA allows you to benefit in a variety of alternative investment opportunities with the potential to earn even more.

Retirement plans for individuals come in all shapes and sizes. The most popular include traditional IRAs and Roth IRAs. For small businesses, 401ks,  SEP IRAs and SIMPLE IRAs are common. In addition, there are savings plans for special needs, such as Coverdell education savings accounts and health savings accounts.

Individuals obtain these accounts for two key reasons:

1. Saving for a need, such as retirement, education or health care.
2. A method for reducing, deferring or eliminating taxes on the gains. 

1.  The Power of Time and Earnings of an Individual Retirement Account

The chart below shows how through time, saving for retirement is smart.  Your retirement earnings would grow depending on the difference in the earnings of the investment.

2. An Individual Retirement Account As a Tax-Savings Vehicle

Traditional IRAs offer two big advantages or incentives to encourage people to save for their retirement. First, regular contributions to a traditional IRA or real estate IRA may be tax deductible on an IRA holder’s tax return (IRC Sec. 219(a) and (b)). Second, earnings on a Traditional IRA are not taxed until the IRA holder or beneficiary takes the money out. It is these regular deposits, accrued earnings and the passage of time that combine to produce large account balances. And, with a Traditional Individual Retirement Account, you can choose your investments.

Roth IRA vs Traditional IRA - Which will you self-direct?

Effective January 1 , 1998, IRC Sec. 408A, enacted under the Taxpayer Relief Act of 1997, permits the establishment of a Roth IRA.  A Roth IRA is a type of retirement account whereby contributions are not deductible, but distributions (including earnings) can be tax free if certain circumstances exist, particularly if the account is a Roth Self Directed IRA.

Understanding general tax law will assist in making the decision between Traditional IRAs and Roth IRAs. Your accountant may be able to assist you in determining the account that will best suit you.

Small Business Tax Benefits

Many employers choose a qualified plan to obtain the tax benefits. The tax benefits of qualified plans are worth noting.

Generally, contributions to a qualified plan by an employer are tax deductible. Earnings on funds held in a qualified plan accumulate on a tax deferred basis. As with plan contributions, earnings on contributions are not taxed until a distribution from the plan actually occurs.

Effective January 1, 2006, the establishment of a Individual Roth 401k was allowed. An Individual Roth 401k is a type of 401k that allows a small business owner the benefit of tax deductible contributions and non-tax deductible contributions. The non-deductible (Roth contributions) and the earnings can be distributed tax free if certain circumstances exist.

Learning about and using these accounts will help you meet your retirement planning goals.

Click on any of the links below for more information:

Self Directed Retirement Plans for Individuals

• Self Directed Traditional IRA
• Self Directed Roth IRA
• Self Directed SEP IRA
• Self Directed SIMPLE IRA
  

Self Directed Retirement Plans for Small Businesses

• Self Directed SEP IRA
• Self Directed SIMPLE IRA
• Self directed defined benefit plans
• Self directed defined contribution plans
• Self directed individual (k) - with Roth option
• Self directed traditional 401(k) - with Roth Option

Self Directed Retirement Plans for Special Purposes

• Self directed health savings accounts
• Self directed education savings accounts
  

With the exception of certain prohibited investments, an Entrust self directed IRA, self directed individual(k) or self directed HSA enables you to direct your funds into a wider range of both traditional or non-traditional investments. To discover the full range of investments available to you with a self-directed individual retirement account, visit our investments section.