Who is New Direction IRA?
New Direction IRA is a trusted provider of investor education for retirement accounts and HSAs. The services provided enable individual investors to take control of their tax-advantaged accounts using alternative asset opportunities ideally suited to each investor’s goals and investment style. New Direction IRA has over a decade of experience in asset acquisitions, leads the self-directed IRA industry in technology, and has a proven track record for providing clients with quality service.
What do I need to get started?
Step 1 — It takes New Direction IRA one to two business days to open your account once your application is submitted. During the application process, you will elect how you would like to fund your account, either by a rollover, transfer, and/or contribution.
Step 2 — Choose a depository – The IRS requires that metals remain in control of the administrator/custodian in order for the asset to maintain a tax-advantaged status.
Step 3 — Complete a Buy Direction Letter and Depository Election Form and submit the forms to NDIRA.
Step 4 — Agree on a purchase with the dealer. The dealer will send an invoice to NDIRA.
Step 5 — NDIRA pays the dealer from your IRA funds. NDIRA sets up an account at the depository in the name of your IRA. The metals are then shipped by dealer to the depository.
Can I fax or email the documents?
Yes, you may email the forms to: email@example.com or fax them to: 303-665-5962; however, if you will be transferring funds in from another retirement account, please check with your current custodian to see if they will accept a faxed transfer request.
What fees are needed to open an account?
A one time IRA set up fee of $50 is due at the time of account establishment.
Can I take possession of my precious metals after investing?
You may take possession of the precious metals held in your IRA by completing a Distribution Form and distributing the metals from your IRA account. Distributions on all pre-tax retirement accounts are subject to taxes and the IRS may impose an early distribution penalty if you are under the age of 59 ½.
Where are the Precious Metals stored?
Your IRA’s precious metals cannot be held by you individually. You must elect a depository to store your metals. New Direction IRA does not endorse any depository. You are free to choose the depository that best fits your needs. We can work with any depository that you choose.
What is a self-directed IRA?
A truly self-directed IRA is a retirement plan that allows you to invest in any type of asset the IRS allows for an IRA, which includes everything except collectibles and life insurance. The IRS requires that you have a custodian or qualified trustee hold any assets purchased in the IRA on behalf of the IRA holder as well as provide record keeping and IRS reporting for the IRA.
What type of account should I open? Traditional or Roth?
A few factors to consider when determining which type of account to open include: your age, income level, current tax bracket, expected tax bracket when you retire, and whether you or your spouse (if married) are currently enrolled in or are eligible to participate in an employer sponsored retirement plan.
A Traditional IRA is an individual retirement account that allows an individual under the age of 70 1/2 to deposit pre-tax dollars into their account and postpone paying taxes on the funds until the funds are distributed. In most cases, the annual contributions made to your Traditional IRA are tax-deductible in the year the contribution is made, then later, once you’ve retired and are in a lower income tax bracket, you pay the taxes on your distributions.
A Roth IRA is an individual retirement account that is funded with post-tax dollars. The contributions are not tax deductible, however, the advantages of this type of account is that your contributions and earnings can be distributed tax free as long you are over 59 ½ and your Roth has been opened for at least five years. For Roth IRA holders, there are no minimum distribution requirements that must begin at age 70 ½, and, as long as you are still earning income, you can continue contributing to your Roth IRA.
You may want to consult with a qualified tax professional or financial planner to determine which type of account is best for you. More information can be found on our website at www.NewDirectionIRA.com.
What type of account should I open?
The factors to consider include: your age, your contribution and deferral capability, whether you are a sole proprietor or own a company, whether you have common law employees, when you wish to retire, and your tax bracket. Do you seek to make the highest contribution and have the most flexibility? Also factor in the complexity you are willing to deal with. You can review the information on our website at www.NewDirectionIRA.com to receive information regarding plan aspects and contribution comparisons. You should also seek the services of a tax professional or financial planner to work with you on specifics.
What are the income limitations to contribute to a Roth IRA in 2014?
To determine how much you can contribute to your Roth IRA for the current year, please review the Roth contribution table located on the IRS’s website: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-for-2014.
What are the income limitations to contribute to a Traditional IRA in 2014?
As long as you earn taxable income and are under the age of 70 ½, the IRS allows you to contribute to a Traditional IRA. However, the amount of your contribution which you are able to deduct may be limited based on your income and whether you or your spouse (if married), are covered by an employer sponsored plan. Deduction limits can be found at: http://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits.
What is the maximum contribution that can be made to a Roth or Traditional IRA in 2014?
Current contribution limits for a Roth or Traditional IRA can be found by going to http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.
How do I know if I should request a transfer or a rollover?
If you are moving funds from an employer sponsored plan into an IRA, you must request a rollover. However, if you are moving funds between like accounts (Traditional IRA to Traditional IRA or Roth IRA to Roth IRA) and you have not completed a rollover in the past 12 months, then the decision is yours.
A rollover is reportable to the IRS, however, it is not a taxable event if the funds are received by the new custodian within 60 days. A transfer is neither a taxable event, nor is it reported to the IRS. You are allowed only one rollover per 12 months. There is no limit to the number of trustee-to-trustee transfers you can complete in one year.
I have a 401k that has X dollars amount; how many times can I roll over funds per year?
The IRS limits the number of indirect rollovers, also know as a 60 day rollover, you make to one per twelve months. The IRS does not however, limit the number of direct rollovers you make from your 401k to your IRA.
The difference between an indirect rollover and a direct rollover is that with an indirect rollover, the funds are distributed directly to you and then you are responsible for transferring the funds to your new custodian. The IRS requires that you complete the rollover of funds to your new custodian within 60 calendar days; otherwise, the distribution is treated as a taxable distribution. An important note: when you elect an indirect rollover from your 401k plan, the plan administrator is required to withhold 20 percent for federal income tax. This means when you rollover the amount distributed from your 401k into your IRA, you must make up the 20 percent that was withheld, otherwise, the 20 percent withheld is treated as a taxable distribution.
With a direct rollover, you never take physical receipt of the funds. The funds are moved from your 401k plan directly to your IRA without any taxes being withheld. The IRS does not limit the number of direct rollovers you can do in one year.
I have a Traditional IRA with X dollar amount; how many times can I transfer funds to it?
There is no limit to the number of times you can transfer funds between like IRAs as long as you are requesting a trustee-to-trustee transfer and not an indirect rollover. An indirect rollover can only be completed one time per twelve months. There is also no limit on the number of times funds can be rolled into your IRA from a 401k plan as long as you are requesting a direct rollover.
I have an existing retirement account; can I open a self-directed IRA account with New Direction IRA?
Yes, you may open a self-directed IRA even if you have an existing retirement account. There are a few factors to consider when determining which type of account to open, which include: your age, income level, tax bracket, expected tax bracket at retirement, and whether you or your spouse (if married) are currently enrolled in or are eligible to participate in an employer sponsored retirement plan. If you are unsure of which type of account is best for you, you may want to consult with a qualified tax professional or financial planner to determine the best option.
How do I make a contribution? How often can I contribute?
There are a number of different ways to make a contribution. New Direction IRA accepts personal checks, cashiers checks, or online via ACH. You may login to the www.myDirection.com client portal to make an online deposit. Checks should be made out as follows: NDIRA, Inc. FBO [your name here] IRA and mailed to:
New Direction IRA, Inc.
1070 W. Century Dr. Ste 101
Louisville, CO 80027
Contributions need to be accompanied by a Deposit Coupon. In addition to sending a physical check, contributions can also be made via ACH by accessing your account online at www.myDirection.com, clicking on the tab at the top to “Make a Deposit/Contribution”, then completing and submitting the online form.
There is no limit to how often you can contribute, however, there is a limit to how much you can contribute each year. Current contribution limits for a Roth or Traditional IRA can be found by going to: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.
What is the difference between a Traditional IRA and a SEP or SIMPLE IRA?
A Traditional IRA is an individual retirement account that allows tax deductible contributions to be made to the account. SEP and SIMPLE IRAs are retirement plans for small businesses. These plans allow small companies to offer their employees a retirement plan without having the high costs associated with administering a 401K plan. SEP and SIMPLE IRAs both allow employer contributions to be made to the IRA. For more information on these types of plans visit: http://www.irs.gov/pub/irs-pdf/p560.pdf.