Self Directed IRA's and 401K's with Tax Liens
After working with thousands of tax lien and deed investors we
have noticed an increase in the students that would like to use
their retirement savings for investments. These students have the
motivation and desire to invest in the lucrative world of tax liens and
deeds, but may not have the initial capital to get started. Many of
these students simply want to increase their investment portfolio and
are tired of seeing minimal returns, and in some cases, losses.
Many students have money sitting in a 401K, 403B or a Tax Sheltered
Annuity generating a very limited return. They may have even set
up an IRA, but are not getting the full benefits and the returns they
desire. To understand how this works it is vital to first understand
what an IRA is and how it works:
IRA stands for Individual Retirement Account. A traditional IRA account is a tax deferred
account for personal retirement funds. The IRA account can grow tax deferred until withdrawn. IRA’s can be established for a tax yea401k can be transferred to a self directed account, but when done correctly it puts you in the financial driver’s seat.
There are many companies that set up these accounts. We don’t
recommend one over the other. You can find them through an internet
search engine or by calling the Tax Lien Hotline. We will give you a list
of companies that our students have previously worked with. Whatever
company you choose to set up your self directed IRA with will have
similar processes and requirements. We recommend checking into
several different companies to find the best rate and the company that
is easiest to work with. They will help you set up your account and
give you the guidelines pertaining to investing. You will also be given
a Tax Id number that will be connected to you IRA account.
"What Forms and Information will be required before
Investing?"
It depends on the custodian you are working with but most will ask for
the following:
• General account info, name, address, Tax ID number, etc.
• Description of the lien or deed.
• Amount of funds needed.
• Which county to make the check to.
• How funds are to be remitted.
