Accounts

Am I eligible to Contribute to my IRA?

Typically, if you have earned income of at least that amount in the given tax year, you may contribute up to $5,500 ($6,500 if over 50 years old)

Can I do all my transactions online?

Give us a call! We’d love to help you.

Do I have to know the full social security number for the listed minors I've selected as my beneficiaries?

How can I loan money to somebody from my IRA funds?

Loaning money from your IRA is as simple as creating a promissory note with the loan terms, such as the amount, duration, interest rate, whether it is collateralized, etc., and ensuring that the person to whom you are loaning funds is not disqualified. That is, the person you are loaning funds to is neither a fiduciary to the IRA nor a lineal ascendant or descendant, including their spouses.

How do I create an online account to view my statements?

To access your account(s) online and view statements you must first create a new user name and password. Call Us : 866-314-8609

How do I complete a Buy, Sell, Distribution, Rollover, etc.?

Each has its specific form which is fundamental (though other forms may be needed in conjunction with them depending on specifics of that transaction).  Call Us : 866-314-8609

How long will it take to transfer my funds?

Typically, the transfer of funds can take anywhere from 2-4 weeks depending on the custodian and how quickly they will send the funds over to Tower. To help expedite the process, the client should notify their current custodian of their intentions and request for them to process the transfer upon receipt.

If my account is unable to fund an investment, what are my options?

You can make a contribution, transfer or rollover IRA funds from another custodian, partnering with yourself or other people’s IRAs or personal funds, or leveraging the property with a non-recourse loan.

What are the options for funding my account?

Any of the following: contribution, transfer, rollover.

What documentation is needed to create a new account?

A new account application, fee schedule, photo ID, and set up fee.

When does the 60 day clock start on Rollovers?

The day the clients receives the funds.

Who can contribute to my Health Savings Account (HSA)?

Anyone, including your employer, can contribute to your Health Savings Account (HSA), so long as you maintain a high deductible health plan. Eligible individuals 55 and older, but younger than 65, may contribute an additional $1,000 under a “catch up” provision.

Can I contribute to a Traditional IRA if I’m covered by a retirement plan at work?

Yes, you can. However, the tax-deductibility and contribution limits may vary depending upon your adjusted gross income and whether, if you are married, your spouse is covered by an employer retirement plan.

Can I take a Distribution of my account In-Kind? How long to get my distribution check?

Yes. It generally takes 2-3 business days to receive a distribution check.

When am I allowed to take a Distribution without penalty?

Once you reach age 59 1/2 you are able to take a distribution without penalty.

How do I take Distributions? Can I instruct Tower to distribute specific amounts each month?

To take a Distribution from your qualified retirement plan, you must complete an Tower Distribution Form. Yes

What is a Required Minimum Distribution?

A Required Minimum Distribution (RMD) is the amount required to be withdrawn from an individual’s retirement account every year, once the individual reaches age 70 ½ years of age, or retires, whichever is later. If the retirement account is an IRA, or the individual is a 5% owner of the business that sponsors the retirement plan, the individual must begin taking RMDs at age 70 ½, even if the individual has not retired.

Which retirement accounts require minimum distributions?

When do I have to take my first RMD?

How is an RMD amount calculated?

Can an RMD be taken from one account instead of multiple accounts?

May I withdraw more than the RMD?

If I miss taking an RMD in time, what will happen?

Is it possible to have the penalty for not taking an RMD waived?

Can an excess distribution apply to a future year?

How is an RMD taxed?

Can an RMD be rolled over into another tax-deferred account?

If an employee has reached age 70 ½ and is receiving RMDs, does an employer still need to make plan contributions for that employee?

How long does it take to set up an account?

Why does Tower charge for services?

What would be helpful for a client to know when calling in?

What are some of the most interesting investments that you have seen?

How long does it take to receive a distribution check?

Funding

What is the difference between a Transfer and a Rollover?

How does an investor use their IRA or 401k to fund a life settlement investment?

How do I figure out whether I should convert funds in a Traditional IRA to a Roth IRA?

Who initiates the Transfer from one IRA custodian to another?

Can I set up automatic transfers back to my other IRA?

What is a recharacterization?

Do I need to recharacterize my full contribution or can I do a partial recharacterization?

Is there a limit on the number of recharacterizations I can conduct in one year?

What are the benefits of a recharacterization?

General

May I partner with my IRA to make an investment?

How fast can my investment be funded?

How do I know if an investment I want to make is acceptable in my Tower SDIRA?

Can Tower give me investment advice?

Can I borrow from my IRA?

Am I allowed to invest in a private stock or private business?

What account is best for me to open? What are the differences?

What are my investment options?

What kind of investments are allowed?

What is a Beneficiary IRA?

What investments are not allowed in my IRA?

Which account is the Self-Directed IRA?

How are self-directed plan assets valued?

Who is allowed to complete the Fair Market Valuation Form?

Who is considered a disqualified person to do the valuation?

Do I need to mail back anything else along with the FMV Form?

What else do I need to know about fair market valuations?

What happens if I do not turn in my Fair Market Valuation Form?

Who pays for this valuation?

LLCs

Can I partner with friends and family in my LLC?

Can I pay myself a salary to manage my LLC?

Can I roll over my current real estate LLC and its investments to Tower?

Does an IRA LLC have the same tax advantages as holding an asset directly in my SDIRA?

Does Tower handle the accounting of my LLC?

Does Tower handle the legal work of incorporating an LLC?

Does Tower need to review and approve investments I want to make with my LLC?

I’ve heard the terms “checkbook control IRA” and “IRA LLC.” What are these?

Is having an LLC in my IRA permitted?

What are the advantages of using an LLC versus just having my SDIRA purchase an asset?

What happens if my LLC needs money for repairs or fees and everything is invested?

Why can’t I have an LLC with the IRA that I have with my broker?

Prohibited Transactions

Can I transfer rental property I own personally to my IRA?

Is having an LLC in my IRA permitted?

Can I invest in a company that I work for?

Can I borrow from my IRA?

What investments are not allowed in my IRA?

Real Estate

Are there restrictions on the type of property I can purchase? Am I restricted to residential property?

Can I use my investment property as a second home?

Can my IRA borrow money to purchase the investment property?

Can my IRA purchase property that I already own?

How long does it take to make a typical real estate purchase?

I am buying property out of state. Can I bill my IRA for my travel expenses?

Whats the difference between the IRA buying the property and having an IRA-owned LLC or LP buying the property? Are there disadvantages to either approach?

What are the different considerations for purchasing offshore properties?

What does Tower require to fund a real estate transaction?

What due diligence should be performed prior to making a real estate purchase?

What if I already have a contract in my name and I want the IRA to purchase the property?

Who can my IRA partner with to purchase property?

Am I required to rent the property or can it be vacant?

Can I be the property manager?

Can I do my own repairs?

Can I use the property during the year?

Can my kids live in the home that my IRA owns and pay me rent?

Can the rental income from the property in my IRA flow back to me personally?

Do I need a property manager to manage the property within my IRA?

How is the rent collected on rental property?

I am a contractor. Can I rehab the property that my IRA owns?

Can the rental income from the property in my IRA flow back to me personally?

I want to put my living trust on title for the investment property that my IRA will be purchasing. Is that possible?

If I cannot be the property manager, who can I employ?

What do I do if my IRA doesn’t have sufficient funds in the account to pay for the expenses?

What expenses on the property can my IRA pay for? What is not payable from the IRA?

Where should income be sent and how do I pay for expenses?

Why do expenses like utilities, repairs, taxes, and mortgage need to be paid from the IRA account?

Can I get a personal loan on the property that my IRA owns?

Can I represent myself as the agent for the transaction?

Can I sell the property to myself?

Can I transfer rental property I own personally to my IRA?

How long does it take for my transaction to be processed after receiving the closing documents?

I already gave the seller a check to hold the property. How quickly can Tower send the earnest money?

I am going to an auction to bid on property. I need a cashier’s check issued in my name. What do I need to do?

If I submit a distribution request, can I distribute a percentage of the property, or do I have to distribute it all?

What does Tower need to sell the real estate that my IRA owns?

What is a non-recourse loan?

What is UBIT?

Questions?

Give us a call and speak with an expert: 866-314-8609

About Us

Tower provides account administration services for self-directed retirement and tax-advantaged plans.

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