IRA - Posted by dimpil

import · October 20, 2003, 4:10pm

Posted by dimpil on October 21, 2003 at 08:02:12:

Thanks. I seems I will have to look into the SEP and SIMPLE as my projections has a potenital earnings for the plan, a bit over 100,000 per year with the retirment money lending money to purchase the home at 6 points with 9% interst only payments based on 24 homes a year.

import · October 20, 2003, 4:10pm

Posted by dimpil on October 20, 2003 at 16:10:22:

To save time and do a dual benefit, my mother and I are thinking of putting her money in the self directed IRA the one flashing this site often. We are getting the info but my general quesiton is is anyone else doing this?

I was thinking that it would benefit her for self use by her charging our company 6 pt fee up front, and the loan would be interst only for 6 months then doing a rate term refi and she would get principal and interst on the back end.

I really have no clue how the IRA program works with them but on paper the idea sounds excellent! So I wanted to see if anyone else was using the IRA self directed for themselves and was I thinking right about it’s use.

Thanks in advance!

import · October 20, 2003, 8:27pm

Re: IRA - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on October 20, 2003 at 20:27:17:

For your mother to get a commission on a transaction with her own IRA is most likely a prohibited transaction, but ask the custodian to be sure. Yes several of us are doing this kind of investing.

import · October 20, 2003, 8:19pm

Re: IRA - Posted by Brent_IL

Posted by Brent_IL on October 20, 2003 at 20:19:03:

There are catch-up provisions, but in a straight IRA the limitations on annual contributions will prevent a whole lot of wheeling-and-dealing until the accumulation builds up.

import · October 21, 2003, 5:08am

Re: IRA - Posted by Dimpil

Posted by Dimpil on October 21, 2003 at 05:08:24:

If not a commission, what about a lender fee?

I have a letter sent to her CPA to clarify because the site (Ohio Investors) was clear but the IRS was confusing.

import · October 21, 2003, 5:14am

Re: IRA - Posted by Dimpil

Posted by Dimpil on October 21, 2003 at 05:14:03:

Okay, you lost me! =)

What are catch up provisions? And what would be the best type of IRA?

I was wondering if her profit would be considered her deposit vs. gains as with a ‘traditional’ IRA type investment. Umm sounds like it would be her deposit vs investment growth type of income.

Thanks!

import · October 21, 2003, 4:16pm

Re: IRA - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on October 21, 2003 at 16:16:46:

I am not at all sure on the rules. I do know that it would be prudent to get it done correctly in the beginning so that the situation does not get challenged later on. Talk to the experts. Good planning.

import · October 21, 2003, 7:54am

Re: IRA - Posted by Brent_IL

Posted by Brent_IL on October 21, 2003 at 07:54:42:

I?m not an authority on retirement plans, but I know that you can mix-and-match SEP, SIMPLE, and other plans to dramatically increase the amount of annual contributions well beyond $3,000.

I copied the following from the Equity Trust website.

?Catch up? Contributions
In order to allow Americans, who have reached the age of 50, to enjoy the full benefit of the new increased contribution limits, the law allows these individuals the ability to contribute more to their retirement account. These so called ?Catch Up? contributions will allow an individual the ability to catch up on their retirement savings. In order to qualify for the ?catch up? contribution an individual must have reached the age of 50 in the year in which they make the ?catch up? contribution.

Year Traditional/Roth Catch up

2001 N/A
2002 $3,500
2003 $3,500
2004 $3,500
2005 $4,500
2006 $5,000
2007 $5,000
2008 $6,000
2009 $6,000