Article Explains Common Errors Investors Make Related to Alternative Assets Within Self-Directed Retirement Plans
ROSELAND, NJ, March 27, 2023 /24-7PressRelease/ — Jaime Raskulinecz, founder and CEO of Next Generation Services, LLC, has published an article in the Forbes Finance Council column titled, “Why You Need to Understand IRA Prohibited Transactions.” In it, she explained what constitutes a prohibited transaction according to IRS guidelines, and common errors self-directed investors make that are related to the alternative assets allowed within self-directed IRAs.
Self-direction allows investors to include many alternative assets—such as real estate, precious metals, private equity funding, and royalties—within their retirement plans. Next Generation provides comprehensive account administration and asset custody for its clients who self-direct their retirement portfolios. As such, Next Generation’s transaction support team ensures that clients’ investments comply with IRA guidelines. However, as Raskulinecz noted in her article, there are three common errors investors make in relation to those assets, that create a prohibited transaction.
“The three types of prohibited transactions investors should avoid are per se, which is engaging in a transaction with a disqualified person; extending credit from the IRA to a disqualified person; and self-dealing, in which the IRA owner or other disqualified person benefits from the retirement account’s investments,” said Raskulinecz. “It is important to understand these, to avoid losing the tax-advantaged status of the self-directed retirement plan and trigger unfavorable tax consequences.”
The article contains several examples of how prohibited transactions may occur with different types of alternative assets, and the negative tax consequences that ensue. You can read the full article here.
To learn more about Next Generation Services or self-direction as a retirement strategy, visit www.NextGenerationTrust.com.
About Next Generation Services, LLC
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.
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