Introduction to Self-Directed IRAs

Presented By Gary KowalskiDirector of Sales

Preface What is a self-directed IRA?

An industry term for an IRA that invests in non-traditional assets such as Real Estate, Private Stock, Precious Metals, etc.

About The Entrust Group

Administrators for self-directed retirement plans

Leader in our industry• Over 30 years of service• 14,000+ clients and nearly

$2 billion in investor assets

About The Entrust Group

Knowledgeable staff• All staff eligible have

earned CISP designation

Educators • National CE Program• National and local in-person

events and webinars

Local offices

Entrust is the premier provider of self-directed retirement plans:

Disclaimer

The Entrust Group ("Entrust") does not provide investment advice or endorse any products.

All information and materials are for educational purposes only. All parties are encouraged to consult with their attorneys, accountants and financial advisors before entering into any type of investment.

Single family and multi-unit

homes

Apartments

Condominiums

Commercial property

Developed & undeveloped land

Mortgages, lease/options

Foreign property

Trust deeds

Leveraged property

Precious metals

Limited liability companies

Limited partnerships

Unsecured/secured loans

Joint ventures

Life settlements

Investment Choices

Investment Restrictions

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

Life Insurance

S Corps (S corporation tax laws prohibit IRAs to invest in them.)

* Exceptions: Gold, Silver, Platinum & Palladium bullion of certain purity

Prohibited Assets

Your Spouse

Your Parents

Your Grandparents

Your Children

Your Grandchildren

Spouses of

Lineal Descendants

IRA Fiduciary

Disqualified Persons

Certain family members cannot do business with your IRA.

Examples of Acceptable Transactions

Remember the Self-Benefit Rule

Partnering with yourself ona new deal

Partnering with your spouse on

a new deal

Partnering with your cousin

Leasing the property to your siblings

IRA Purchase of Vacation Property

IRA purchases vacation property in Hawaii• Purchase contract must be signed by Entrust and signed

“Read and Approved” by IRA holder

• Vesting must read “The Entrust Group Inc. FBO J. Smith IRA account 12345”

• All rents/expenses flow into/out of the IRA

• Cannot stay there on holiday; cannot provide sweat equity

Rental property in Davis• Daughter cannot rent from your IRA even at

fair value

• IRA can borrow funds to purchase real estate

• Percentage of net income attributable to the loan may be subject to UBIT (Unrelated Business Income Tax)

IRA Purchase of Rental Property

LLCs

Advantages: Affords “checkbook” control Immediate access to funds Ease of investing Savings on check fees Limited liability protection from claims

Disadvantages: Cost to create You maintain records Single investment at inception May be subject to State taxes and filings – check with your

financial or tax advisor

With an LLC, the IRA account makes an investment in the LLC by acquiring its member shares.

Business TrustsWith a business trust the IRA account makes an investment in the business trust by acquiring its "beneficial interests."

Advantages: Affords “checkbook” control Immediate access to funds Ease of investing Savings on check fees Greater privacy of information

Disadvantages: Cost to create; more expensive than LLC May be subject to State taxes and filings – check with your

financial advisor

Funds from a Qualified Plan, including 401(k), 403(b), 457 plans can be rolled into an IRA.

Plan TypesTraditional IRA

Roth IRA

Individual (k)

SEP & SIMPLE

401(k) - Record keeping for defined benefit plans that allow for alternative investing. - Required plan documents (“Do your own”)

Other Special Plans:

Coverdell (ESA)

Health Savings Accounts (HSA)

Getting Started is Easy

Open an Entrust Account

Fund Your Account

Purchase Your Asset

Three Easy Steps

1 2 3

On Our WebsiteTake Action

Sign up for a class or webinar12

Schedule a meeting with an Entrust representative

3 Read about self-directed retirement accounts

4 Call our office

Calendar of events

E-newsletter

Due Diligence Info

5 Join us on Facebook & Twitter

Free Reports

FAQs

The Next Steps

Gary KowalskiDirector of Sales

555 12th Street, Suite 1250Oakland, CA 94607

800-392-9653

www.TheEntrustGroup.com