real estate investor's comparison of ira, roth ira, and 401(k)
DESCRIPTION
If you aren't exactly sure what the difference between IRA, ROTH IRA, and 401(k) this video is for you. Find more investor training videos at www.HasslefreeCashflowInvesting.com Professional investor David Campbell, uDirect IRA president Kaaren Hall, and CPA Amanda Han present an easy to understand comparison of the features and benefits of investing through an IRA, ROTH IRA, or 401(k) with an emphasis on using these qualified plans in a self-directed account.TRANSCRIPT
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Solo(k) versus Self-Directed IRA
The Ultimate Tax SmackdownREMATCH
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• RELATIONSHIPS
• IDEAS
• OPPORTUNITIES
• NOT a sales pitch
• NOT investment, legal, or tax advice
Begin with end in mind
3
Today’s agenda
• IRA investing
• BASIC self-directed IRA investing (SDIRA)• SUPER-SIZED SDIRA = Solo(k)
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Generalist vs Specialist
TaxLegal
Financing
Brokerage
Property
Management Accounting
Due
Diligence
IRA
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$ 29,959.92 $ 11,242.90 30
$ 19,040.07 $ 8,142.57 25
$ 10,803.85 $ 5,440.20 20
$ 6,130.39 $ 3,634.70 15
$ 3,478.55 $ 2,428.41 10
$ 1,973.82 $ 1,622.47 5
$ 1,000.00 $ 1,000.00 0
12% but tax deferred inside
IRA
12% with tax outside iRA
Year
Why tax deferral is so important
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WhatWhat’’s the Difference?s the Difference?
Typical IRATypical IRA
•• StocksStocks
•• BondsBonds
•• Mutual FundsMutual Funds
•• CDCD’’ss
SelfSelf--Directed IRADirected IRA
•• Rental PropertyRental Property
•• NotesNotes
•• Private StockPrivate Stock
•• LLCLLC’’ss
•• Tax LiensTax Liens
•• Foreign PropertyForeign Property
•• Raw LandRaw Land
•• Etc.Etc.
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What Are The Limits?What Are The Limits?
A SelfA Self--Directed IRA can invest in anything Directed IRA can invest in anything
EXCEPTEXCEPT
1.1. Life Insurance PoliciesLife Insurance Policies
2.2. CollectiblesCollectibles
1.1. ArtworksArtworks
2.2. CoinsCoins
3.3. Collectible CarsCollectible Cars
4.4. AntiquesAntiques
5.5. GemsGems
6.6. StampsStamps
7.7. RugsRugs
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What if your funds are with your What if your funds are with your
current employer?current employer?
Your plan will probably NOT allow you to self-direct
Must wait until you leave the companyTo rollover retirement plan
You can request an “in-service” transfer from your current plan administrator.
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EveryoneCertain Business Owners*
EveryoneEveryoneEligibility?
N/A5559.559.5Retirement Age?
NONOYESYESUDFI?
NOYESYESYESUBIT?
N/AYESNONOPlan Loan?
N/A$17,000 $5/6000NOTax-Free For Life Contributions?
N/A$50,000/25%$5/6000$5/6,000Contribution Limit?
Shelters passive
income and maybe active
Lowers UBIT No excess
Offset UDFI / UBIT
No excess
Offset UDFI / UBIT
No excess
How is depreciation used?
NO
NO
NO
Maybe*
Cash
YES
*limits
NOYES
*limits
Deduction in current year?
MAYBENONOCreditor exempt?
MAYBENOYESTax On withdrawals?
YESYESYESTax deferred growth?
401(k)ROTHIRA
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www.HasslefreeCashflowInvesting.comDavid@HassleFreeCashflowInvesting.com
Former high school band director
Self-made multi-millionaire
Real estate investor / developer / broker / manager
Financial educator / author / speaker
Faculty Member: Investor Summit at Sea
with Robert and Kim Kiyosaki
David Campbell - Founder
Hassle-Free Cashflow Investing
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KaarenKaaren Hall, PresidentHall, President
uDirectuDirect IRA Services, LLCIRA Services, LLC
(866) 538(866) 538--35393539
[email protected]@uDirectIRA.com
uDirect IRA Services, LLC
2522 Chambers Road, Ste 100Tustin, CA 92780
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Contact Us
Company Logo(877) 975-0975
KEYSTONE CPA, INC. Maximizing Profits & Increasing Wealth
www.KeystoneCPA.com
AS SEE
N ON:
(877) 975-0975
www.KeystoneCPA.com
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DAVID CAMPBELL – professional investor / developer www.HasslefreeCashflowInvesting.com
KAAREN HALL – president of uDirect IRA Services www.uDirectIRA.com
AMANDA HAN, CPA – tax strategist www.KeystoneCPA.com