239-333-1031 Main Phone

The Power of IRA ChoiceGET STARTED WITH SELF-DIRECTED IRAS

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About AdvantaIRASINCE 2002…

Kevin Collins, Regional Sales ManagerAdvantaIRA has been helping investors reach their retirement goals since 2002.

ServicesSelf Directed IRA Administration

1031 Exchanges

Offices Throughout FloridaMiami/Fort Lauderdale

Fort Myers

Gainesville

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AdvantaIRA, and its offices do not provide investment advice or endorse any products.

All information and materials are for educational purposes only. Please consult your attorney, accountant or financial advisors before entering into any type of investment.

AdvantaIRA reserves the right to accept or reject the asset, based upon our review for administrative liability.

The Choice is YoursADVANTA IRA DOES NOT GIVE INVESTMENT ADVICE

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• To educate you about the different types of IRAs that can be self-directed

• Help you learn about the diverse investments options available to you in Self Directed IRAs

• Highlight the benefits of tax free strategies– Learn the Benefits of Roth IRAs– Learn about Alternative Assets options– Learn about Checkbook Control

Our Goal at AdvantaIRA3 SIMPLE GOALS

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• Set up in 1974 for your Retirement by tax code section 408

• Vehicle provides tax free grow in the account.

• Eligible for distributions at age 59 ½• There are penalties for early

distribution• Current Year contributions can be Tax

Deductible for most IRAs

What is an IRA?INDIVIDUAL RETIREMENT ACCOUNT

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• Certain IRA contributions can be tax deductible

• Gains & income produced inside a retirement account are tax free

• The Roth IRA might never be taxed• BUILD YOUR RETIREMENT

Why Invest with an IRA Account?BENEFITS OF TAX FREE INVESTING

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

Three Primary Advantages of IRAs

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

Time Value of Money (For Illustrative PurposesOnly – Please consult tax advisor for detailed results)

 Rate of Return 15%Tax Rate 19%

Year YR Begin Gain YR End Year YR Begin Gain Tax YR End1 $10,000 $1,500 $11,500 1 $10,000 $1,500 $285 $11,2152 $11,500 $1,725 $13,225 2 $11,215 $1,682 $320 $12,5783 $13,225 $1,984 $15,209 3 $12,578 $1,887 $358 $14,1064 $15,209 $2,281 $17,490 4 $14,106 $2,116 $402 $15,8205 $17,490 $2,624 $20,114 5 $15,820 $2,373 $451 $17,742

26 $329,190 $49,378 $378,568 26 $175,785 $26,368 $5,010 $197,14327 $378,568 $56,785 $435,353 27 $197,143 $29,571 $5,619 $221,09628 $435,353 $65,303 $500,656 28 $221,096 $33,164 $6,301 $247,95929 $500,656 $75,098 $575,755 29 $247,959 $37,194 $7,067 $278,08630 $575,755 $86,363 $662,118 30 $278,086 $41,713 $7,925 $311,873

Total Taxes Paid $70,810

PAY TAXES NOW OR PAY TAXES LATERTraditional versus Roth

The TraditionalEstablished in 1975, this IRA provides for pre-tax saving for most individuals. All investment earnings grow tax-deferred until withdrawal. This option is available to you whether or not you or your spouse is covered by an employer's plan.

Eligibility: Everyone under age 70½, with earned income, is eligible to contribute to a Traditional IRA - there's no income limit.

Contribution Limits: $5,500 + $1,000 catch-up provision if age 50+ Nonworking spouse may be eligible for equal contributions based on working spouse's income

Deductibility: Based on the following factors. Consult your tax advisor todetermine if your contributions are deductible.• Tax Filing Status• Active Participant Status• Modified Adjusted Gross Income

Distribution Rules: All withdrawals are taxed at the ordinary income tax rate of the IRA holder. Withdrawals before the age of 59.5 are normally subject to an additional 10% penalty.

Required Minimum Distribution: The IRS requires that you withdraw at least a minimum amount - known as a Required Minimum Distribution - from yourretirement accounts annually, starting the year you turn age 70-1/2.

The Roth IRAPassed into law in 1997, this unique saving plan provides for post tax savings with the advantage that all the income growth is tax deferred until withdrawal. If withdrawals take place at least five years after funding, and after the age of 59.5, there is no taxation.

Eligibility: Everyone with earned income, not exceeding the following Modified Adjusted Gross Income (MAGI) limits is eligible to contribute to a Roth IRA.• Married Filing Separate: $10,000• Single: $120,000• Married Filing Joint: $176,000

Contribution Limits: $5,500 + $1,000 catch-up provision if age 50+ Non-working spouse may be eligible for equal contributions based on working spouse's income

Deductibility: Contributions are not deductible

Distribution Rules: Withdrawals for IRA holders who have had their Roth IRA funded for at least 5 years and reached the age of 59.5 are not taxed. For early withdrawals, a ten percent penalty and ordinary income tax will apply to the Roth IRA earnings. The contributed portion of the Roth IRA is not taxed. Certainadditional rules apply to Roth IRAs which have been converted from pre-tax retirement plans.

Required Minimum Distribution: None required

Other Types of Tax Advantage Plans

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

• Simplified Employee Pension (SEP)

• Savings Incentive Match for Employees of small employers (SIMPLE)

• Spousal IRA

• Coverdell (educational)

• Health Savings Account (HSA)

• 401(k) Plan

• A Self-Directed IRA allows the investor to choose the assets they know and they feel comfortable investing in

• Unlimited Choices• Why is this not more popular?

– 99% of IRA Custodians will only hold investments that they sell; therefore, They only promote these investments (Stocks, Bonds, Mutual Funds)

What is a Self-Directed IRA?UNLIMITED CHOICES

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• Real Estate (all types)• Unsecured/Secured Notes• Futures/FOREX• Gold & other precious metals• Private Stock• Limited Liability Companies• Limited Partnerships • Joint Ventures• Checkbook IRAs

Your Investment Choices

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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WHAT DO OUR CLIENTS BUY

• What assets are prohibited?– Collectibles & Life Insurance

• any work of art,• any rug or antique,• any metal or gem,• any stamp or coin,• any alcoholic beverage

IRS Rules and Regulations

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

• Examples of Disqualified Parties• You and your spouse• Lineal ascendants (and their spouses)• Lineal descendants (and their spouses)• Any fiduciary of IRA • Anyone providing services to your IRA• Corporations, partnerships, trusts, or estates in

which you own, directly or indirectly, at least 50%

IRS Rules and Regulations

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

• Prohibited Transactions (IRC Sec 4975)– An IRA cannot engage in any transaction (direct or indirect)

with anybody or anything considered related to the IRA

– Some examples of prohibited transactions – between a disqualified person and an IRA are:

• Selling, exchanging or leasing property • Lending money or extending credit • Furnishing goods, services or facilities

IRS Rules and Regulations

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Two key points with IRAs and real estate:

NO self dealing and NO personal use!

- IRA doesn’t have to own the

whole asset entirely

- IRA pays its share of expenses

and receives its share of income

- Example of vesting

- AdvantaIRA Trust, LLC FBO Client Name, IRA as

to an undivided 50% interest

and John Smith as to an

undivided 50% interest

Tenants-in-common / Partnerships

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AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

• IRA purchases Apartment building in Gainesville, Florida and IRA beneficiary rents (at fair market value) to multiple parties including a son attending college at UF. Prohibited?

• IRA Lends (via 1st mortgage note) to an LLC in which IRA beneficiary own 67%. Prohibited?

• IRA purchases a condo from IRA beneficiary’s Brother. Prohibited?

Prohibited Transaction Pop Quiz

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• Geri buys a house in need of rehab in Fort Myers, Fl. 6 Months later, her fiancé, Dale, wants to invest in the project by purchasing half of the equity with the 100k he has in his IRA. Prohibited?

• Your IRA and your Father purchase a condo as 50/50 tenants-in-common ownership. Prohibited?

Prohibited Transaction Pop Quiz

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• Single family and multi-unit homes– Fix & Flip (REO & Bank owned OK!)– Buy & Rent

• Apartments• Condominiums• Commercial property• Improved or unimproved land• Foreign property investment• Land Trusts

Real EstateREAL ESTATE IS THE MOST POPULAR ASSET WE HOLD

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• IRA takes title to the property directly– AdvantaIRA Trust LLC FBO John Q.

Client IRA # 123456All income and expenses must flow through the IRA accountNo personal use or self dealing

Real Estate

• Dr. Jones transfers $35,000 to a self-directed IRA• Dr. Jones directs the IRA to execute a contract to

purchase a parcel of land in Northport• The IRA purchases the land for $30,000 in May

2008• Dr. Jones directs the IRA to sell the property for

$48,000 in November 2012• The original $30,000 plus the gain of $18,000

goes back in Dr. Jones’s retirement plan tax-free  

Case Study - Buying Real EstateGETTING STARTED

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• Lend money on a Mortgage or Promissory note

• Generally command higher interest rates 8-15%

• You negotiate and ultimately decide the terms

• IRA can foreclose in event of default

Private Lending - Notes

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• Bill Smith decides to invest in note with his IRA and hold a note & mortgage for an individual purchasing a rental property. $100,000 5 Year balloon

• The note is secured by the property and the interest rate is 12%

• Subsequent monthly interest only payments of $1000 are made to the IRA from the individual.

• Benefit - tax free income to the IRA

Case Study Lending Money in your IRAYOU CAN BE THE BANK

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• Via Subscription Agreement– Hedge Funds– Real Estate Funds– Private Stock/PPM

• As Partner/Member– IRA is a member on Operating Agreement

Private Companies

• Freedom & Responsibility• IRA is sole 100% member• IRA holder is manager

– File LLC with state– Prepare IRA compliant Operating

Agreement– Establish bank account for LLC– Advanta then funds business bank accountAll investments are made in the name of

LLC

“CHECKBOOK CONTROL IRA”Single Member LLC

Single-Member

LLC

AdvantaIRA

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InvestmentC

InvestmentB

InvestmentA

SM LLCBank

Account

“CHECKBOOK CONTROL IRA”Single Member LLC

$$$

How to Get Started with Self Directed IRATAKE CONTROL OF YOUR RETIREMENT NOW

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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• Annual Contribution (limits based on the type of plan you have)

• Transfer from another IRA • Rollover from a pension plan or 401k

How to Fund your IRATHERE ARE THREE WAYS TO MOVE MONEY

AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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We Do• IRS Reporting• Receive investment income and pay investment expenses• Request all required forms for transactions• Accept contributions and process distributions

We Do NOT• We Do Not provide any investment advice• We Do Not sell or endorse any investment products• We Are Not regulators, nor do we approve transactions

Quick ReviewADVANTAIRA BENEFITS

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Learn more about self-directed retirement plans:

1. Weekly educational seminars2. Special Continuing Education sessions for Brokers,

Realtors, Financial Planners, CPAs and Attorneys3. Sign up for our free monthly newsletter4. Visit our website: www.AdvantaTRUST.com for a

large collection of articles, applicable IRS code, and answers to FAQ

5. Just call us – we are a local resource and look forward to serving you and your clients

AdvantaIRA is a ResourceDO YOU NEED MORE INFORMATION

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Thank you from AdvantaIRAWE ARE HERE TO HELP…CALL ANYTIME

Contact Information

AdvantaIRA Trust, LLC Offices in • Fort Myers• Miami• Gainesville Phone: (786) 275-5870www.AdvantaTrust.com

 

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