If you are planning for your retirement, it is important to make sure that you decide which self-directed retirement plan suits your needs. Technically speaking, there are 4 different types of self directed IRA plans that you can choose from. One is the ROTH IRA, the SEP IRA, Simple IRA and the Traditional IRA. While it can be confusing to choose the right one for you and your financial plans, focusing on one type at a time will surely make sure that you will be able to completely understand how each type works.
What is a Traditional Individual Retirement Account Plan?
Traditional IRA has different features that could work for you. Its annual tax deductible contribution is based on the amount of income that you earn. This will be based on which salary level or bracket your income actually belongs to. Withdrawals can be made as soon as you reach 59 ½ years old. By the time you reach 70 ½ years of age, you will be required to withdraw your funds. Income taxes will not apply until you withdraw from your IRA account.
Self Directed IRA Contribution Policies of the Self-Directed Retirement Plan
Based on the law, if you are considered to be eligible to make annual Individual retirement contributions, you are entitled to contribute as much as $5,500 under the age of 50. For those over 50 years of age, you are allowed to make as much as a total of $6,500 as contribution for 2014-2015. Account holders are allowed to make frequent contributions, which means that you can put funds in your account on a monthly, quarterly or even yearly basis given that you stay within the amount and age self directed ira contribution limits.
Benefits of Self-Directed IRA
There are several benefits that one can get out of choosing the right self directed retirement plan. The list includes a wide variety of investment choices or possibilities. Through a more diversified retirement plan, finding tangible investments are part of the various self-directed IRA benefits. You can also enjoy tax deferrals from your check book IRA account and those mandated by the law.
Being able to work with the best self-directed retirement plan provider will also open new opportunities for saving money and protecting your assets, investments and your actual IRA funds.
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