Friday, April 4, 2014

Don't confuse the IRA

You as an investor signs up for a self-directed IRA, the first thing he or she notices is the newfound investment freedom. Virtually any asset can be purchased with the IRA and the investor can effect the transaction by simply signing a check. However, with great freedom comes great responsibility. Since the investor will now be handling the IRA transactions personally, there's more room for error. Here are the top mistakes that investors should be aware of when dealing with their self-directed retirement funds.
Don't confuse the IRA with its checking account.
The platform for investing your IRA funds is the LLC and its accompanying checking account. However, this platform is for investment and business purposes only. It is not meant to be used as an access point to the IRA itself. All contributions and distributions should be taken solely via the custodian.
IRA investing self-directed IRA