Tony Unkel: Hello, everybody! Thank you for joining us, for today's webinar hosted by the entrust group. Today we'll be building your 2025 Ira calendar.
Tony Unkel: We'll be covering important dates, deadlines, and tax tips
Tony Unkel: before we do get started. I do have to read a brief disclosure. The interest group does not provide any investment, advice, or endorse any products.
Tony Unkel: All information and materials are for educational purposes only.
Tony Unkel: All parties are encouraged to consult with their attorneys, accountants, and financial advisors. Before entering any type of investment
Tony Unkel: today's agenda, we will be reviewing important dates and deadlines for your self-directed Ira.
Tony Unkel: We're gonna analyze new limits and laws
Tony Unkel: and Ira tax preparation best practices.
Tony Unkel: My name is Tony, uncle, I will be your presenter today. I am in my 6th year at entrust. I operate the northeast region, and I pride myself on educating investors and professionals, on tax preferred retirement accounts and alternative investments.
Tony Unkel: little bit about the interest group.
Tony Unkel: We are self-directed Ira administrators. We have knowledgeable staff with most holding the Cisp certification.
Tony Unkel: and we hold monthly educational webinars.
Tony Unkel: We have a little under 5 billion in assets under administration with 24,000 active investors
Tony Unkel: and 40 years of service.
Tony Unkel: and we do pride ourselves on the 1 point of contact business model based on your region, you will have one dedicated and trust employee to help you with all of your Ira needs.
Tony Unkel: Let's hop right into it.
Tony Unkel: Important dates and deadlines for 2025,
Tony Unkel: January 31, st the 1st one fair market valuation statements is required.
Tony Unkel: the required minimum distribution statement and the Irs form 1099 R. We can go into each one of those individually.
Tony Unkel: or the fair market value. This reports the value of the balance of your Ira of December 31st of the prior year.
Tony Unkel: This valuation is used to calculate your required minimum distribution.
Tony Unkel: and the amount may come from the Ira holder.
Tony Unkel: Custodians may use alternatives besides appraisals.
Tony Unkel: some values are maybe difficult to acquire promptly, such as partnerships and Llcs. So it's in your best interest to reach out to those partnerships or Llcs. Inform them of the deadline when they can get you a proper valuation
Tony Unkel: required minimum distribution. Notice. This is provided to Ira holders who have a distribution due for the year.
Tony Unkel: This is required for traditional Iras sep Iras, simple Iras and individual. 401 K. Plans
Tony Unkel: failure to take your full Rmd. Could be costly up to a 25% penalty on the portion failed to be distributed
Tony Unkel: for 4 0. 1 K. Holders, failing to take an Rmd. Could cause the plan could cause for a plan disqualification.
Tony Unkel: Your Rmd. Is due by December 31, st
Tony Unkel: but your 1st year Rmd. Can be extended to April 1st of the following year.
Tony Unkel: The Irs form 1099 r. 1099 r. Is the form that will give you all this information.
Tony Unkel: Your custodian will issue this form to document any distribution from your account. During the calendar year
Tony Unkel: the taxable amount will go in. Box 2. A highlighted in green.
Tony Unkel: The amount of income tax withheld will go in Box 4 highlighted in orange, and the Irs code that depicts this specific type of distribution will be in Box 7 in blue.
Tony Unkel: Next date is a March 15th date. This is the tax deadline for S. Corporations and partnerships please. Reference. Irs publication 49, 51, and 5, 41 for further information.
Tony Unkel: Step in individual 4, 1 k plans, establishment and contribution deadlines for S-corp partnerships. You can reference Irs publication 560
Tony Unkel: moving on to April first.st This is the deadline for traditional Ira Sep and simples, and individual 401 k. Participants who turned 73 in 2024, and delayed their distribution of their 1st Rmd. This is when they have to take that Rmd. Now. So if you extended it
Tony Unkel: into April April 1st is the new due date, April 15, th
Tony Unkel: tax day. This is the deadline to submit your individual tax. Return to form 1040,
Tony Unkel: make an Ira contribution, not including extensions.
Tony Unkel: establish and contribute to seps or individual. 401 ks.
Tony Unkel: There are plans for sole proprietors or C. Corporations.
Tony Unkel: more information on publication, 560,
Tony Unkel: also the deadline to recharacterize a current year contribution as well as execute a corrective distribution of an ineligible Ira contribution.
Tony Unkel: The Irs form 1040 requires taxpayers to disclose their taxable income for the year.
Tony Unkel: determining, if you owe additional taxes or to get a refund
Tony Unkel: total, Ira distributions will be reported in Box 4 a.
Tony Unkel: And the taxable portion of the distribution will be recorded in Box 4 B.
Tony Unkel: And April 30th is the deadline for Ira custodians and trustees to mail. The Irs form 54, 98 to Ira holders.
Tony Unkel: May 31, st the Irs form 5,498, and 5,498 essay must be mailed to Ira holders by May 31, st
Tony Unkel: while the Irs form 54, 98 essay covers Hsa. Plans. The 54, 98 reports, Ira contributions, Rollover, Roth, Ira conversions and required minimum distributions to the Irs.
Tony Unkel: The taxable amount of the distribution will be in box one highlighted in green, and the amount of income tax withholding in Box 10 highlighted in blue.
Tony Unkel: May 31st is also the deadline for Ira holders to remove excess. Esa. Contributions for earnings for 2023
Tony Unkel: to remove excess contributions simply request a withdrawal by contacting your financial institution.
Tony Unkel: September 15th September 15th is the deadline for S corporations and partnerships that file the tax return extension for 2024 to make their contributions.
Tony Unkel: The same deadline applies to employers.
Tony Unkel: Anyone that filled out a tax return extension establishing an
Tony Unkel: A. Sep or individual. 401 k. For tax year 2024.
Tony Unkel: Headline for S. Corporations and partnerships to make simple plan employer contributions.
Tony Unkel: October 1st is the deadline for existing businesses to establish a new simple plan for tax year 2024.
Tony Unkel: The more October dates, October 15, th the deadline for C corporations and sole proprietors who filed an extension to establish and contribute to step or individual. 401 K. Plans for the tax year.
Tony Unkel: Taxpayers who filed a tax extension or filed their taxes timely, must remove or recharacterize a contribution by the State
Tony Unkel: deadline for C corporations and sole proprietors, the ones who filed an extension to make their simple employer plan contributions.
Tony Unkel: and October 31, st Ira custodians and trustees must send out the document required to satisfy the simple plan. Notice requirements by this date.
Tony Unkel: October is a busy month.
Tony Unkel: November deadlines, November second. 60 days before the following plan. Year. Businesses must provide notices to their employees about the type of contribution they'll be making for taxes
Tony Unkel: the previous tax year.
Tony Unkel: November 14.th Ira custodians and trustees must send fair market valuation notices to all clients by the end of the second week in November to update their assets. Fair market value.
Tony Unkel: accept publicly traded assets with openly available market prices
Tony Unkel: to December, December 31, st traditional Iras step Iras, simple Iras individual 401 K plan participants older than the age of 72 must distribute their Rmd. By this date
Tony Unkel: separate accounts inherited Iras must be established by this date, for each beneficiary of Ira holders who passed away in 2022.
Tony Unkel: Now let's get into the new stuff for 2025. We have new limits and new laws.
Tony Unkel: contribution limits for both traditional and Roths they stayed the same
Tony Unkel: 2024 up to age 57,000 same in 25.
Tony Unkel: Anybody over the age of 50,000 can make an additional $1,000 contribution.
Tony Unkel: Bring your total contribution for the year to $8,000. So no change from 24 to 25 on Ira contribution.
Tony Unkel: Traditional Ira modified, adjusted gross income, also known as Magi limits.
Tony Unkel: We did have an increase across the board here from 24 to 25 went from 77 to 87,000 up to 79,000 to 89,000 to 2025 for singles.
Tony Unkel: married, filing jointly up to a hundred 46,000 married filing separate.
Tony Unkel: stayed the same 0 to 10,000
Tony Unkel: and spouse of an active participant
Tony Unkel: up to 246,000 for 2025 Roth Ira limits
Tony Unkel: for single individuals. This did increase. It went from a Max. Income from 161,024 to 165,025 for single individuals married, filing jointly is up to 246,000 this year.
Tony Unkel: and married filing separate tax returns stay the same 0 to 10,000.
Tony Unkel: Employer. Sponsored plans saw an increase as well for simple Iras. Your deferrals went up $500 in 2025, from 16,000 to 16 5
Tony Unkel: catch-up contributions for anybody. The age of 50 and over stayed the same at 3,500, bringing your total contribution. If over the age of 50, from 19,500 up to 20,000
Tony Unkel: step Iras, you can contribute less of 25% of your compensation, or 69,000 for 2470,000 for 25
Tony Unkel: limit stayed the same at $750, and your Max compensation cap was raised $5,000 to 350,000
Tony Unkel: individual 4 0, 1 Ks employer plus employee contributions. So a thousand dollar increase for 25 up to 70,000
Tony Unkel: employee elected deferrals got a $500 increase to 23, 5, and the catch-up contribution for ages 50 and older stayed the same at 7,500
Tony Unkel: for health savings, accounts, single coverage saw an increase from 41, 50 to 4,300
Tony Unkel: family coverage, 8,300 to 85, 5, 50,
Tony Unkel: and catch up contributions for age 55, overstayed at $1,000
Tony Unkel: quarter. All educational savings accounts, no change here. Staying at $2,000 contribution
Tony Unkel: per year until a child is 18.
Tony Unkel: New laws that take effect this year.
Tony Unkel: Automatic. 401 K. Enrollment. There's a New 10 Year rule for Inherited Iras
Tony Unkel: inherited Ira Rmd. Penalties. We'll take a look at each one individually
Tony Unkel: before we do that we'll do some top Ira text reminders. We can go back one second
Tony Unkel: just to touch base on this automatic. 401 k. Enrollment, new 401 K. Plans established on or after. December 29, th 2022
Tony Unkel: to implement an automatic enrollment feature in 25, unless an exception applies.
Tony Unkel: the initial automatic enrollment contribution amount must be at least 3%, but not more than 10%
Tony Unkel: each year. Thereafter the amount is increased by 1% until it reaches at least 10%, but not more than 15%.
Tony Unkel: The new 10 Year rule for inherited Iras.
Tony Unkel: If you inherited an Ira from someone who died on or after January 1, st 2020, you are required to withdraw all the funds in the Ira no, no later than December 31st of the 10th full calendar year following the death of the individual from whom you inherited the Ira
Tony Unkel: exceptions that can still withdraw funds from an inherited Ira over their lifetime, beginning in the year following their descendant's death.
Tony Unkel: surviving spouse, a child of the descendant under the age of 21,
Tony Unkel: a beneficiary who is not more than 10 years younger than the descendant or an individual who is disabled or chronically ill
Tony Unkel: inherited. Ira Rmd. Penalty, starting in 2025, a 25% penalty
Tony Unkel: will generally be assessed to those who do not take their Rmd that year.
Tony Unkel: Getting ahead of 2025 tax season top tax reminders maximizing your situation.
Tony Unkel: build plan to Max contributions or plan your tax loss, harvesting
Tony Unkel: gift, tax exclusion for qualified charitable donations.
Tony Unkel: college savings, plans and spousal Iras
Tony Unkel: always maximize your situation. Do you have an up, down, an up year or a down year? You got a raise for having a good year
Tony Unkel: taxable compensation required. There's no age limit, no maximum income limit earned income income subject to social security tax took a loss this year. Married file, a joint tax return contributions are made to each spouse's own Ira.
Tony Unkel: If tax and charitable donations ideally with your financial advisor, you must review your annual contribution, capability across all account types.
Tony Unkel: current partnership laws and processes.
Tony Unkel: Ideally. With your advisor, you must review your annual contribution, capability across all account types.
Tony Unkel: college savings, plans, and spousal Iras
Tony Unkel: college savings plans save on taxes. While saving for your child's college education, if not utilized fully in the future, you can roll to a Roth, Ira, and continue investing
Tony Unkel: spousal Iras. Many have a spouse that is ineligible from opening their own Ira non-working, or another disqualifier, but you can open a spousal, Ira, and contribute on their behalf
Tony Unkel: top mistakes to avoid
Tony Unkel: dealing in prohibited transactions.
Tony Unkel: A/C. Roth conversions and indirect transfers, not planning for Udfi or Ubit
Tony Unkel: dealing with disqualified persons who is a disqualified person.
Tony Unkel: That's you and your spouse, your parents, grandparents, and great grandparents, children, grandchildren, and great grandchildren.
Tony Unkel: fiduciaries of the plan or service providers.
Tony Unkel: understanding your rules and consequences when engaging the disqualified person, or prohibited transactions that will disqualify your Ira.
Tony Unkel: So if you engage in a prohibited transaction with a disqualified person. The entire value is considered distributed on the 1st day of the tax year.
Tony Unkel: But remember disqualified persons, parents, grandparents, children, grandchildren, spouses, and fiduciaries.
Tony Unkel: Anybody else outside of that list
Tony Unkel: is a qualified person that you can engage with.
Tony Unkel: They see Roth conversions and indirect transfers
Tony Unkel: mainly complete. Ross conversions without considering the tax implications and best timeline to complete
Tony Unkel: A/C planning or not planning at all can cost you big on tax day.
Tony Unkel: when transferring from one account to a similar account like a traditional Ira to another traditional Ira.
Tony Unkel: Some accidentally move funds through their personal or non-similar retirement accounts. First, st
Tony Unkel: this is considered an indirect transfer and a taxable distribution.
Tony Unkel: not planning for ubti unrelated business, taxable income.
Tony Unkel: How does it work?
Tony Unkel: Unrelated business? Taxable income is money earned by a tax exempt entity like your Ira that's not related to its tax exempt purchase.
Tony Unkel: The Irs defines Ubti as income from a trade or business regularly carried on, that is not substantially related to a charitable educational or other purpose that is the basis of the organization's exemption
Tony Unkel: to verify. If your investments are deemed Uvti, please consult your tax advisor.
Tony Unkel: Let's wrap up.
Tony Unkel: Interested in opening a self-directed. You can do so. Do so in 3 simple steps.
Tony Unkel: 1, st one is open your account
Tony Unkel: step 2 would be to fund your account via transfer Rollover contribution
Tony Unkel: and last app would direct your custodian to purchase your asset on your behalf.
Tony Unkel: What's next on the interest, webinar calendar sending. We'll be sending you a replay and additional resources, and you can register for our February webinar, which is the 2025 real estate market trends and expert insights
Tony Unkel: need more information on self-directed Iras feel free to visit our website, theentrustgroup.com and access our learning center.
Tony Unkel: Happy to open it up now for any questions. If anybody does have some.
Tony Unkel: all right, we do have a couple of questions. So 1st question, how is gold distribution taxed? If gold taken in kind, long term capital gains income tax.
Tony Unkel: the sale of that gold later. It has no capital gains definitely something you want to speak to your tax advisor about, but whenever you do a distribution there is a fair market value of the asset being distributed which will be recorded and sent to the Irs.
Tony Unkel: So whatever value of the gold or metals that you're distributing, that's what gets reported
Tony Unkel: next is, how do we know what kinds of companies qualify
Tony Unkel: for us to invest from our Ross anytime. You're doing your due diligence on any company you want to invest in.
Tony Unkel: You can always bring up the idea that you are considering investing with your self-directed Ira, and that company can tell you if they will accept the Ira dollars or not. Most companies will.
Tony Unkel: Is there an additional catch up contribution provision for people over 60? No, it's just the 50 and over for the $1,000.
Tony Unkel: And I open a traditional Ira now and make contributions retroactive. Note. Once the tax deadline is passed, it's over for the year. There are no retroactive contributions.
Tony Unkel: Yes, a link will be emailed out to everybody at the conclusion of the webinar. It'll also be available. Live in our learning center
Tony Unkel: for you to download there as well.
Tony Unkel: Can you invest in a company and have a role managing the company. Is this scenario deemed a valid investment. Another one is great to discuss with your attorney or your tax professional. But we can describe, define what a disqualified person is under Irs code 4,975. They define any individual that has 50% or more ownership of a company, 50% or more voting power on a board, or considered a highly compensated employee to be a disqualified person
Tony Unkel: whenever engaging in a investment in which you are an employee, director, officer, or manager of the company, highly suggested that you sit and seek legal advice or tax advice before entering into that transaction.
Tony Unkel: What is a good way to report fair market value for real estate held in an Llc.
Tony Unkel: Real estate appraisals. You have to hire appraiser. Real estate is tough, but you do a competitive market analysis by a registered.
Tony Unkel: licensed real estate agent or a real estate appraiser to give you the true value. But we do understand, and the Irs understands that you know real estate is valued at what somebody's willing to pay for it.
Tony Unkel: But there are appraisals out there that you can go out and get appraisals if you're getting appraisal to approve a mortgage as well, so you will need a certified appraisal.
Tony Unkel: How do we know what kinds of companies qualify for us to invest in a Roth? Is there an arm's length requirement? There's always an arm's length requirement. When using your Ira, you can refer to
Tony Unkel: Irs code 49, 75. That deals with that
Tony Unkel: you can't be a director, officer or employee that has 50% or more ownership, 50% or more
Tony Unkel: voting power on the board
Tony Unkel: keep it open for a couple more questions.
Tony Unkel: What about other hard to value assets. Yes, there are. Assets are hard to value, to be a little more specific on a specific asset, but, as we mentioned, if it's an Llc. Or a partnership.
Tony Unkel: It's best to reach out to them to give you a proper evaluation
Tony Unkel: when turning a self-directed Ira into a Roth account is the fair market value of the S.
Tony Unkel: So if you're talking with doing a Roth conversion, then yes, we would get the fair market valuation provided on the k. 1 give you the value of the traditional Ira that we would convert to a Roth
Tony Unkel: follow up to the real estate appraisal question, does that mean you have to do one every year. The Irs requires the custodian to
Tony Unkel: provide fair market valuations of the Iras to them on an annual basis, which does mean that we have to go out to the account holders to provide us with the valuations of their accounts, that we can provide that requirement to the Irs.
Tony Unkel: How long does it take to vet the investment with entrust?
Tony Unkel: The entrust group does not do any due diligence on the investments? That is the responsibility of the investor. So it's up to you to do your own due. Diligence
Tony Unkel: investment processing times at the entrust group can range from anywhere from 24 to 48 h. We do have a fully automated investment process. Now.
Tony Unkel: so as long as your paperwork is in order submitted through the entrust portal, we can fund an investment the same day that we receive paperwork, if not within 24 h.
Tony Unkel: Do you need to have professional evaluation for companies we invest in, or we rely on what we are given by the company. If the company is providing you a proper evaluation, and they are willing to sign off on that valuation. We can absolutely accept that.
Tony Unkel: Can you personally be a member of the same Llc. As my Ira? Yes and no. You are a disqualified person to your Ira. However, the Irs does allow you to partner with the disqualified person at the creation of the transaction. So when you are creating your Llc. And you list yourself personally as a member, and your Ira as a member. You are allowed to do that one time any future contribution to that Llc.
Tony Unkel: Would be considered a prohibitive transaction under disqualified persons, and if you are thinking of partnering with yourself, absolutely, sit down with your accountants to make sure you cover all your bases before doing so.
Tony Unkel: Couple more seconds. Keep it open for anybody. Any last questions coming in?
Tony Unkel: Is there a limit on the number of direct Ira transactions per year.
Tony Unkel: You can make as many investments as you want per year.
Tony Unkel: I'm not sure if you mean, is there a limit on the number of direct transfers between Iras, moving money from one Ira to another. Ira, there is no limit on Ira to Ira transfers.
Tony Unkel: There is a limit on Ira Rollovers. You can only do one Rollover per 12 months.
Tony Unkel: Who we call to set up multiple Roths that are a little complicated. My contact. Information will be on the screen. Now feel free to reach out to me. Phone call email. I'm happy to assist you with whatever you need.
Tony Unkel: You receive distribution funds from my investment
Tony Unkel: sent to your personal checking. Can you write a wire? Write a check, or send a wire to your account, or is that illegal. Once you take possession of the funds, it is considered a distribution.
Tony Unkel: You have to work with your tax advisor and the investment to see how you can correct that.
Tony Unkel: Can you invest in the stock market with your Ira account? Yes, in general, Iras can invest in the stock market and trust Iras cannot. We are strictly for alternative assets in the private markets at the moment.
Tony Unkel: In the future we do hope to bring a trading mechanism to
Tony Unkel: the entrust client base. It's something that's been discussed in the works. It's just not something that's readily available at the moment. We do hope to have that feature in the near future, but currently entrust is strictly in the private markets.
Tony Unkel: If if you have a sale of private equity holding, how should the funds be distributed if that private equity investment was made within the entrust. Ira and you sell off
Tony Unkel: all those proceeds have to come back to your entrust Ira from there you can decide. If you want to distribute them to yourself, or you can transfer them to another Ira.
Tony Unkel: Couple more one more minute to keep it open for any last minute questions, and then we could wrap up.
Tony Unkel: Well, I thank everybody for joining. Please find my contact information on the screen. Should you have any additional questions that come to mind. Happy to chat and answer them.
Tony Unkel: Also you will be emailed a copy of the presentation as well, and it will be available on the entrust website in our learning center. I thank everybody for joining to us today and enjoy the rest of your week. Take care now.