Last Updated on March 17, 2023 by George
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An individual Retirement Account (IRA) is a fantastic option for those who wish to retire with financial security. Combined with a 401(k), pension, and Social Security, an IRA can be a solid foundation for a retirement nest fund.
However, to effectively prepare for their financial goals, they must deal with a reputable organization that can explain the wide IRA varieties and how they operate.
Among these reputable businesses is IRA Innovations. This evaluation intends to provide individuals seeking to open an IRA with a better understanding of IRA Innovations and their services.
Before you begin reading this evaluation:
They recognize how tough it is to choose a firm worthy of your hard-earned money. They create informative and valuable content to equip you with as much knowledge as possible to make the best decision.
A supplier of self-directed IRAs, IRA innovations has one office in Tennessee and two in Alabama. The business informs its customers about the advantages of having an Individual Retirement Account (IRA) for retirement and the different investments they can make in an IRA.
The business also provides expert account management and transaction support services.
To help people comprehend their investment objectives and how self-directed IRAs might assist them in achieving their financial goals, IRA Innovations also provides free workshops.
To help its clients increase their retirement savings, IRA Innovations provides comprehensive and trustworthy information about self-directed IRAs. The business doesn’t advocate for any investments.
However, they will provide their clients with the knowledge, materials, and equipment required to make self-directed IRAs simple to comprehend.
To help its customers get started on the road to financial freedom, IRA Innovations will support them in opening an account and make the process quick and easy.
Available IRA Accounts
IRA Innovations provide four main IRA accounts:
A Traditional Self-Directed IRA
An individual can use a self-directed traditional IRA to save money for retirement tax-deferred.
Tax deductions are available for individual contributions, while profits, dividend income, and interest accrued on the initial capital are tax-deferred until withdrawn.
Additionally, an IRA can offer asset protection for eligible accounts, allowing the assets to pass to the next generations.
A self-directed IRA differs from traditional IRAs because owners have total discretion over their chosen assets. In a self-directed IRA, the account holder has many alternative investment options, including real estate and precious metals.
Bonds, mutual funds, and stocks are additional investment options. As a result, those who possess a self-directed IRA will profit in three ways:
- Tax-advantaged wealth building
- Transferring money to beneficiaries with minimal or no tax consequences
- Investments with a variety in the owner’s portfolio
A self-directed traditional IRA can accept contributions in a variety of ways. Up until 70.5, people can contribute with their earned income.
Additionally, individuals can transfer or rollover funds from an existing workplace plan, such as a 401(k), pension plan, or another traditional IRA.
Thirdly, if their present traditional IRA does not allow them to choose their investments, they can transfer assets to a self-directed conventional IRA.
According to IRA Innovations, their investment choices will never conflict with those of a self-directed traditional IRA owner.
The IRS and governmental rules prohibit appointed financial institutions like IRA Innovations from recommending or marketing assets.
Additionally, there must be sufficient assets in the self-directed conventional IRA to cover the costs because the money in any IRA is not FDIC-insured.
Self-Directed Roth IRA
One of the finest retirement savings methods is a self-directed Roth IRA from IRA Innovations. The investment earnings are not subject to federal income tax if specific requirements are met.
Additionally, clients can move money to a self-directed Roth IRA if their current Roth IRA keeps them from picking the assets they want to own. A standard IRA or employer plan, such as a 401(k), can be converted into a self-directed Roth IRA by an individual.
It will be a taxed event; The income will rise tax-free.
Though this is a taxable event, owners of self-directed Roth IRAs can donate more than the $5,000 annual maximum plus the $1,000 catch-up contribution.
Additionally, individuals are exempt from taking distributions until they reach the age of 70.5 and are still eligible to make contributions. A self-directed Roth IRA holder may often withdraw the principal investment amount without incurring any tax obligations.
The following criteria can help people decide whether a self-directed Roth IRA is the best retirement option for them, according to IRA Innovations:
- They desire tax-free growth of their assets as well as tax-free withdrawals.
- With the help of an employer-sponsored retirement plan, they have already started saving for retirement.
- Their income falls within the IRS-allowed range for Roth IRA self-directed contributions.
- They may need to access the funds in the account to invest in a retirement plan.
- They believe their tax rate will remain the same or increase during retirement.
- They want to control the investments in their IRA.
Customers are welcome to get in touch with IRA Innovations to find out if a self-directed Roth IRA is a good idea for them.
Self-Directed SEP IRA
If a person is self-employed, a partner in a partnership or the owner of a corporation, simplified employee pension plans (SEP IRAs) may be an easy and reasonable retirement plan option.
People can use an IRA Innovations self-directed SEP IRA to use their retirement savings where their expertise is.
When choosing a SEP IRA retirement plan, you can make contributions on behalf of yourself and your employees to a Traditional IRA.
The amount that clients contribute to their SEP IRA accounts can range from 0% to 25% of their earned income in any year. The sole limitation is that each employee’s contribution percentage in any given year must be the same.
Additionally, customers can transfer all or a portion of their assets to an IRA Innovations self-directed SEP IRA. They will now have the freedom to choose their investments.
A self-directed SEP IRA accepts the same types of contributions as a self-directed regular IRA or Roth IRA. A way to fund a self-directed SEP IRA is through donations made with earned income.
In addition, the owner can transfer or rollover funds from an employer-sponsored plan that does not permit asset management, such as a 401(k), pension, or another SEP IRA.
IRA Innovations’ self-directed SEP IRAs need a conventional workplace plan’s start-up costs and recurring costs. Employees are also allowed to contribute up to 25% of their wages tax-deductible.
A self-directed SEP IRA enables the company owner and staff to invest their retirement funds in mortgages, properties, and other alternative ventures.
Any person ought to think about opening a self-directed SEP IRA if:
- They operate either as a single proprietorship, an S company, an independent contractor, or a self-employed person.
- The company does not make tax profits from investments.
- They do not need or want to contribute annually to a retirement plan.
- They seek a retirement program with minimal overhead.
- They desire a more comprehensive range of investment possibilities, including those in equities, bonds, mutual funds, real estate, mortgage notes, private businesses, and others.
Business owners can make retirement contributions for themselves and their employees through a Savings Incentive Match Plan for Employees (SIMPLE) IRA. Small businesses with 100 or fewer employees are eligible for SIMPLE IRAs.
Employees are permitted to fund a self-directed SIMPLE IRA with a portion of their salary. Additionally, the employer contributes an equal amount each year. Future distributions will be taxed at the standard rate of income.
Employees can also invest in mortgage notes, real estate, and other alternative ventures. Additionally, employees can benefit from tax-deferred retirement income thanks to a SIMPLE IRA.
A SIMPLE IRA enables a business owner to lower corporate taxes and recruit and retain experienced, bright employees. It’s simple to open and maintain this kind of account. Additionally, IRA Innovations will handle the details.
Employer payroll deductions encourage participation among workers, and the business owner has a range of options for their contribution to the employee plan.
Other IRAs IRA Innovations also offers specialized IRAs that let account holders concentrate on a particular class of account asset:
IRA For Real Estate
Investors have always viewed real estate as a secure and dependable investment. As a result, many investors who wish to maximize their retirement investment may find real estate IRAs a desirable option.
Real estate investing is the main emphasis of a self-directed IRA called a Real Estate IRA. With this self-directed IRA, you can invest in and purchase various real estate and related assets that generate income, including commercial buildings and rental homes.
IRA For Precious Metals
Asset diversification lowers the risk associated with investments. Precious metals are one of the various ways that self-directed investors can diversify their retirement portfolios.
With a precious metals IRA from IRA Innovations, individuals can invest in various precious metals, including gold, silver, platinum, and palladium.
The Management Team
According to the company website, IRA Innovations has a small two-person workforce. As a result, when compared to other providers, IRA Innovations can be one of the minor IRA providers.
However, for clients to feel confident investing their money in the company, it is crucial to understand the viewpoint and history of the management team.
Bill Gulas is the owner, operator, president, and CEO of IRA Innovations. He holds a master’s in marketing research and a bachelor’s in accounting from the University of Alabama.
He wanted to convert his 401(k) into an IRA to invest in real estate. He had previously worked in the telecommunications sector. The CPA has yet to identify an administrator or custodian in Alabama who may assist him with this transaction.
This encounter gave him the idea to create IRA Innovations. Bill is still excited about managing IRAs and assisting clients in increasing their retirement savings to increase wealth even after 17 years in business.
Mike Todd, who has been with IRA Innovations since the beginning and works in business development, is Bill Gulas’ business partner.
He started his work as a sales representative for a semiconductor manufacturer after graduating from the University of Alabama in Huntsville with a degree in electrical engineering.
Years later, after joining IRA Innovations, Mike makes personal investments in real estate, mortgage notes, and small businesses using his self-directed IRA. Every presentation he provides highlights his enthusiasm for the company.
Additionally, Mike enjoys getting to know his clients and guiding them toward financial freedom.
He has provided financial advice to families for more than ten years. Additionally, he has conducted financial workshops on managing debt for individuals and families.
IRA Innovations levies an annual fee for their IRA accounts, which is disclosed on their website. For instance:
From $0 to $14,999 in accounts
- Accounts from $0 to $14,999.99 = $195 annual fee
- Accounts from $15,000 to $29,999.99 = $260 annual fee
- Accounts from $30,000 to $44,999.99 = $325 annual fee
- Accounts with a value of $750,000 or more have an annual fee of $1,850.
Final Thought – IRA Innovations Review
It makes sense to invest in IRA Innovations because of its remote workforce, which takes care of each client’s needs.
Customers can use a variety of accounts and assets they offer to grow their retirement savings. For high-net-worth individuals and new investors alike, the price structure is fair.
Additionally, IRA Innovations offers each participant a broad range of suitable investment possibilities.