Individual Plans

What is a Self-Directed Traditional IRA?

A Traditional IRA allows individuals to put aside tax-deferred money for retirement. Contributions are made from pre-tax dollars and the original funds will grow tax-free upon withdrawal.

A Traditional IRA is an Individual Retirement Arrangement, more commonly known as an Individual Retirement Account, which allows individuals to put aside tax-deferred money for retirement. Eligible contributions are made from pretax dollars and may be tax-deductible. Any interest, capital gains, or dividend income from the original funds will grow tax-deferred upon withdrawal.

With an Entrust self-directed Traditional IRA, an individual may have the ability to direct their retirement funds towards a wide variety of investments, including alternative investments such as real estate and precious metals. The Entrust platform does not offer investments, but instead makes it available for IRA holders to choose and hold the investment in their IRA. A self-directed account is different than other financial institutions' IRA offerings because it allows you to have more investment freedom.

Important features of a Traditional IRA

• Potential tax-deductible contributions
• Tax-deferred earnings
• Pay taxes when you take distributions on taxable amounts
• Required minimum distributions begin at age 72.

What are the eligibility requirements for a Traditional IRA?

An individual can open and make contributions to a Traditional IRA if taxable compensation has been received during the year.

If an individual and their spouse have received compensation during the year, an IRA may be established for each. However, if filing a joint tax return, only one spouse is required to receive compensation and is allowed to contribute on behalf of the other spouse.

Is a self-directed Traditional IRA the right plan for me?

• Do you want to make tax-deductible contributions to a retirement account?
• Do you want to supplement the retirement saving options offered by your employer?
• Is your income within the income limits for contributing?
• Do you want the freedom to invest in what you know, whether it's stocks and bonds or real estate?
• Do you want to diversify your retirement portfolio with alternative investments?

Transfer or Rollover your funds to Entrust to get started

If your current Traditional IRA does not allow self-direction, you can easily transfer funds to an Entrust self-directed Traditional IRA and gain access to a wide range of alternative investments, from real estate and gold to private stock and small business. You may also convert a 401(k) with a former employer to a self-directed Traditional IRA.

What is a Self-Directed Roth IRA?

A Roth IRA is an individual retirement account that is funded with post-tax dollars. The tax benefit of a Roth IRA is that all earnings, including interest, capital gains, etc, grow tax-free. You pay income taxes on initial contributions, but you can withdraw the earnings tax-free as long as requirements are met.

Important Features of a Roth IRA

Roth IRAs are a great retirement-savings account if you expect your tax rate to be higher in the future. That’s because you pay income tax on your money before contributing it to the Roth, so if your tax rate is lower now, it makes sense to pay taxes now in return for tax-free growth on your investment earnings.

In other words, Roth IRAs are a smart savings tool for young people just starting out, because they’re likely to face higher income tax rates as they move along in their career. But even someone who is further along on the career path may like a Roth IRA, because these accounts provide tax-free income in retirement.

Eligibility Requirements

An individual can open and contribute to a Roth IRA if both of the following requirements are met:

• Taxable compensation has been received during the year.
• Your modified adjusted gross income (AGI) does not exceed the Roth IRA income limits.

If you and your spouse have received compensation during the year, you can both contribute to your own IRA. However, if you are filing a joint tax return, only one of you is required to have compensation, and you can contribute on behalf of your spouse.

Rules

Contribution Limits: The amount that you can contribute to a Roth IRA is based on your modified adjusted gross income. As of 2010, there is no income limit if you are converting a traditional IRA or an employer-sponsored plan to a Roth IRA. Income limits only apply to annual contributions. Explore more information about Roth IRA contribution limits.

Distribution Rules: With a Roth IRA, you pay income taxes on initial contributions in the year they are made, but you can withdraw the earnings tax-free as long as certain requirements are met. In addition, you can withdraw your direct contributions at any time without penalty, as these funds have already been taxed. You can begin withdrawing earnings at age 59½, but, unlike Traditional IRAs, you are not required to take distributions at any age. More details about the distribution rules.

Is self-directed Roth IRA the right plan for me?

• Do you want tax-free earnings and no taxation on withdrawals?
• Do you want to avoid required distributions?
• Is your income within the income limits for contributing?
• Do you expect your tax bracket during retirement to be equal to or higher than your current tax bracket?
• Do you want to diversify your retirement portfolio with alternative investment options?

Investing in Alternative Investments With Your Self-Directed Roth IRA

Investing in alternative investments like real estate is a popular strategy among clients at The Entrust Group. This is especially true for Self-Directed Roth IRAs - which have the benefit of tax-free distributions. This means any earnings gained from investments like real estate can be accessed 100% tax-free, provided you've met the other requirements for Roth IRAs as well. Learn more about investing in real estate with your Roth IRA.

Transfer or Rollover your funds to Entrust to get started

If your current Roth IRA does not allow self-direction, you can easily transfer funds to an Entrust self-directed Roth IRA and gain access to a wide range of alternative investments, from real estate and gold to private stock and small business. You may also convert a Traditional IRA or a 401(k) with a former employer to a self-directed Roth IRA.

An HSA, or health savings account, is a tax-advantaged savings plan for people who are enrolled in a high-deductible health plan (HDHP). You can use the accumulated funds for medical expenses, such as prescriptions, eye care, dental, and some over-the-counter medications. The funds contributed to your HSA are tax-deductible, reducing your taxable income.

One of the many advantages of an HSA is that you don't have to use your contribution amount in any particular year. Instead, the funds continue to accumulate until you need them. You do not pay taxes on the earnings, and withdrawals are tax-free (as long as they are used for qualified medical expenses).

Another advantage of an HSA is that you do not lose the funds if you change health plans.  Additionally, once you reach the age of 65 you can withdraw the funds without penalty and use your savings however you see fit.

Important Features of an HSA

• Contributions can be used any year - funds continue to accumulate
• Earnings grow tax-deferred
• Withdrawals used for qualified medical expenses are tax-free
• You do not lose the funds if you change health plans
• At age 65, funds can be withdrawn penalty-free for any purposes

What are the eligibility requirements for an HSA Plan?

To qualify for an HSA, you must meet the following requirements:

• Be enrolled in a high-deductible health plan (HDHP)
• Have no other health coverage
• Not enrolled in Medicare
• Not claimed as a dependent on someone else's tax return

How do I determine a traditional self-directed IRA is a right plan for me?

• Do you have a health plan with a high deductible?
• Are you worried about the medical expenses associated with old age and retirement?
• Do you have a pre-existing medical condition that could be costly?
• Do you want the flexibility to invest in alternative investments with your savings?
• Do you want the option to reclaim your savings for any use at age 65?
• If you answered 'yes' to all or most of these questions, an HSA may be a good choice for you.

Transfer or Rollover your funds to Entrust to get started

A self-directed HSA is different from a standard account because it allows you to have more investment freedom. Self-directed HSAs offer the unique opportunity to hold alternative assets, such as real estate, precious metals, and more. The earnings from these investments will grow tax-free, allowing you to save more for health expenses.

If you would like to transfer or roll over your existing HSA into a self-directed account, contact us today to get started.

Before making contributions to an HSA Plan, learn the contribution limits that apply:
Click here to view the HSA Contribution Limits

What is an ESA?

An Education Savings Account, also known as a Coverdell Education Savings Account, is a way to save for your child's education on a tax-free basis. Contributions to an ESA are not tax-deductible, but the investment earnings grow tax-free. By opening a self-directed ESA, you have the ability to grow the account faster than through traditional investments.

ESAs can be used to pay for educational expenses (tuition, books, fees) associated with qualified elementary and secondary schools, as well as higher education institutions.  The funds must be used before the account owner reaches the age of 30.

Important Features of an ESA Plan

• Use the funds to pay for any educational institution or expenses
• Not required to contribute yearly
• Funds can be transferred to any eligible family member below the age of 30

What are the eligibility requirements for an ESA Plan?

To establish an ESA, the following requirements must be met:

• Account beneficiary must be under age 18 or a special needs individual
• Account must be opened with cash deposit

How do I determine an ESA Plan is the right plan for me?

• Is education a priority for you and your family?
• Do you want to help a child, niece, nephew, grandchild, or other young loved one save for college?
• Do you want the flexibility to contribute some years, but not others?
• Are you a savvy investor with unique knowledge of alternative investments?

If you answered 'yes' to all or most of these questions, an ESA may be a good choice for you.

Transfer or Rollover your funds to Entrust to get started

A self-directed ESA is different from a standard account because it allows you to have more investment freedom. Self-directed ESAs offer the unique opportunity to hold alternative assets, such as real estate, precious metals, and more. The earnings from these investments will grow tax-free, allowing you to save more for education expenses.

If you would like to transfer or roll over your existing ESA into a self-directed account, contact us today to get started.

Before making contributions to an ESA Plan, learn the contribution limits that apply:
Click here to view the ESA Contribution Limits