How To Transfer Your SEP IRA To A Self-Directed IRA LLC (Tax Free!)
Are you unhappy with your current retirement account? Or did you hear about the amazing benefits of having a Self-Directed IRA LLC?
In any case, this article will tell you everything you need to know about SEP IRA transfers to a Self-Directed IRA LLC and how Royal Legal Solutions can help you through the process step by step.
Let’s begin where this guy in the picture below is pointing.
SEP IRA Transfers to a Self-Directed IRA
Usually a transfer is done from one IRA to another between two separate financial organizations, but a transfer may also occur between IRAs held at the same organization. If an IRA transfer is handled correctly the transfer is neither taxable nor reportable to the IRS.
With an IRA transfer you, the IRA holder, directs the transfer. But you don’t actually receive the IRA assets. Instead, the transaction in completed by the distributing and receiving financial institutions.
In order for the IRA transfer to be tax-free and penalty-free, you shouldn’t receive the IRA funds in a transfer. Instead, the check must be made payable to the new IRA custodian.
The retirement tax professionals at Royal Legal Solutions can help you fund your Self-Directed IRA LLC. With our help, you’re guaranteed a tax free and penalty free transfer, which means more money in your pocket and a much more enjoyable retirement.
How the SEP IRA to Self-Directed IRA transfer works.
Royal Legal Solutions will work with you to establish a new Self-Directed IRA account at a FDIC and IRS approved IRA custodian. The new custodian will then, with your consent, request the transfer of your SEP IRA assets from your existing IRA custodian (without you having to pay any taxes or penalties.)
Once the IRA funds are transferred to your new IRA custodian, the new custodian will be able to invest the IRA assets into your new IRA LLC. Which means you, as manager of the IRA LLC, will have complete control over your retirement funds so you can any investment you want tax free and penalty free.
60 day rollover rule.
You will have sixty 60 days from receipt of the eligible rollover distribution from a SEP IRA account to roll the funds into a Self-Directed IRA LLC structure. The 60 day period starts the day after you receive the distribution.
No exceptions apply to the 60 day time period. However, in cases where the 60-day period expires on a Saturday, Sunday, or legal holiday, you can execute the rollover on the following business day.
Note: If you’re receiving an eligible rollover distribution, you may rollover the entire amount received or any portion of the amount received.
But do keep in mind, the money of the eligible rollover distribution that is not rolled over to an IRA could be subject to a 10% early distribution penalty if you’re under the age of 59 1/2.
Financial experts here to make your life easier and your accounts richer.
The retirement tax professionals at Royal Legal Solutions can do more than just guarantee that your funds are transferred to your Self-Directed IRA LLC tax free & penalty free.
We’ll also work with you to make sure your new IRA LLC is structured in the most tax efficient manner and is compliant with all IRS rules. If you’re ready to start investing the smart way, call Royal Legal Solutions at (512) 757-3994 today to schedule your free consultation!