How To Utilize Your IRA or other Retirement Account 
(You may know this- but many people don't.)

You can make an investment in a Private Investment Offering, such as the ones we have available from time to time, using IRA or other retirement account funds. The investment stays inside your retirement account, so no early withdrawal penalty or tax penalty is created.  This is done through a Self Directed IRA or other Self Directed retirement account. They are easy and inexpensive to set up and use.

Self Directed Account Custodians
There are a number of retirement account custodian companies that offer this service.  These include IRA Services, based in San Carlos, California (650) 593-2221, as well as Entrust based in Oakland, California and Pensco Trust Company, chartered in New Hampshire.  A link to IRA Services is shown below for ease of reference.  Many of our clients, investors and associates use them

www.iraservices.com.

RETIREMENT ACCOUNT TYPES
There are several different types of retirement accounts, including Traditional IRA, Roth IRA, SEP/IRA, KEOGH & DBPP Plans. Each has different rules regarding tax deductible contribution limits and reporting requirements. Here - below - is a quick summary.

Traditional IRA
Traditional IRA contributors can contribute and deduct up to a given amount each year. Deductible contribution amounts may be greater for those age 50 and over.

ROTH IRA
Contributions to a Roth IRA are not tax deductible. However unlike traditional IRAs future distributions from a ROTH IRA are not taxable. Both Traditional and Roth IRAs grow tax free.

SEP/IRA Plan (Simplified Employee Pension Plan IRA)
Contributors can contribute as much as 25% of their net pre-tax income to their SEP and deduct all it, up to a large maximum annual contribution limit.

KEOGH
Contributors (a Keogh plan and a Profit Sharing Plan are the same thing) can also contribute as much as 25% of their net pre-tax income to their Profit Sharing Plan and deduct all it, up to a large maximum annual contribution limit.

Note: SEPs have largely replaced Keogh Plans because of lower administrative costs and easier reporting requirements, however both are still in use.

Defined Benefit Pension Plan (DBPP)
Contributors can put up to a VERY LARGE maximum annual limit, recently up to $165,000, into their retirement plan to reach their retirement income objectives. Please talk to your retirement plan custodian for more details and for current deductible limits.

Transferring a Retirement Account
Transfer of an existing IRA, SEP/IRA, 401K, Employer Pension Plan, DBPP or Keogh in order to invest in real estate is simple and easy. It just requires selecting a new retirement account custodian that allows Self-Directed investments, then filling out a few transfer forms.

To transfer ANY retirement account here is all you need:

(1) Copies of your existing retirement account statement(s)
(2) A new account set-up form to set up your new Self-Directed IRA, Sep/IRA, Keogh or DBPP
(3) A copy of the transfer form used by your new retirement account custodian.

Your new retirement account custodian will send the completed original transfer forms, once they get the signed originals from you, to your former retirement account custodians, who will then liquidate your holdings and send the money to your new retirement account custodian. Once the money is with your new custodian, you are free to invest it in a privately offered investment, such as the ones we have available from time to time.