Self-Directed IRAs

New opportunities for you and your clients.

What is a Self-Directed IRA?

A self-directed IRA allows the IRA owner to choose where and how their funds are invested. A self-directed IRA is not right for everyone. But it might be the right opportunity for you and your clients.

If you have independent-minded clients who want to diversify their portfolios through alternative investments and still enjoy the benefits of an IRA account, or if you are offering an investment opportunity not generally available to traditional IRA accounts, a GoldStar Trust Self-Directed IRA could offer distinct advantages.

Tap into sources of new assets to offer your clients

Self-directed IRAs are not new, but they are a rapidly growing segment within the huge IRA market. When you can offer your clients a broader range of alternative assets to consider for their IRA investments, self-directed IRAs open a vast market of new capital for you.

Partnering with GoldStar, you can offer your clients our unmatched experience and expertise at helping investors take advantage of the benefits of a self-directed IRA.

Alternative investment options

Self-directed IRAs can be vehicles for alternative investments in things like precious metals, privately offered investments, real estate, church bonds, and even crowdfunding, to name a few. Almost anything can be put into an IRA if a fair market value can be readily obtained; there are exceptions such as life insurance, art and other collectibles.

What are the benefits of a self-directed IRA?

Leverage a wider range of investments
Greater control and flexibility over investments
The power to invest in companies with ideas your client truly believes in
Tax-deferred or tax-free growth, tax deductions, asset protection and estate planning benefits
Protection against market volatility and inflation rates
Asset protection under federal bankruptcy laws
The option to open any type of IRA: Traditional, Roth, SEP or SIMPLE

Read a related article from the Wall Street Journal: IRAs Get Sexier

Why GoldStar Trust Company?

Owning alternative assets in an IRA is easy to do if the custodian you choose specializes in holding the asset you’re interested in. The key is to find the right company to help you with the process.

GoldStar Trust Company is a pioneer in the area of self-directed IRAs. We specialize in IRAs that hold precious metals, privately offered securities, real estate, REITs (Real Estate Investment Trusts), church bonds, crowdfunding and other investments. See our Investment Options for a list of acceptable assets. Or contact us if you have an idea for another investment option.

The role of GoldStar Trust

The investor remains in control while we handle the legal aspects of the retirement assets.

As an IRA custodian, GoldStar is concerned only with making investments of your client’s choosing, and performing all the duties of an IRA custodian. We do not offer or sell any investments, nor are we affiliated with any dealer. We do not give tax or legal advice and we do not benefit financially from your investment choices.

Let us make it easy for you. Contact our Investor Services department (1-800-486-6888) with any questions you may have.

Help your client navigate their retirement.

With a Self-Directed IRA, you and your client
control what is invested and how it is invested.

STEP 1: Choose your type of IRA

WHICH TYPE OF SELF-DIRECTED IRA IS RIGHT FOR YOU?

Deciding which type of IRA to open as a retirement plan is an important financial decision. While all IRAs offer a way to save for retirement, each type—Traditional, Roth, SEP or SIMPLE—offer distinct advantages when it comes to taxation, required distributions and payouts, penalty structures and exceptions, age requirements and more. Consult your tax advisor for details.

A Traditional IRA is a tax-deductible retirement account. Contributions are tax-deductible in the year that they’re made and grow tax-deferred until until they are withdrawn at retirement after age 59½. At that point, distributions are taxed as ordinary income.

Features of a Traditional IRA

Tax-deferred growth & tax-deductible contributions
Contribute until 72
Income does not affect contributions
Pay taxes when you withdraw pre-tax contributions or earnings
If you withdraw before age 59½, you may have to pay 10%
RMDs must be taken starting at age 72

Roth IRAs are non-tax-deductible retirement accounts, meaning they are funded with after-tax dollars, grow tax free, and distributions are tax- and penalty-free at age 59½, provided the account has been open for at least 5 years.

Features of a Roth IRA

Tax-free growth & tax-free qualified withdrawals
Contribute at any age
Your income determines contributions
No taxes when withdrawing contributions or paying federal taxes on earnings (if conditions are met)
If you withdraw before age 59½, you may have to pay taxes on your earning plus 10%
RMDs do not apply

A Simplified Employee Pension (SEP) plan allows employers to contribute to traditional IRAs (SEP IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP. SEP IRAs funds can be invested the same way as most other IRAs.

Features of a SEP IRA

Employer contributions only
Owners must begin to take minimum distributions by April 1 a year after they reach 70½
Annual contributions by an employer to an employee’s IRA can’t exceed the lesser of 25% of compensation or $57,000 for 2020 ($56,000 for 2019.)
All contributions are funded by the employer.
Early withdrawal may be subject to a 10% penalty plus ordinary income taxes
Annual contributions by an employer to an employee’s IRA can’t exceed the lesser of 25% of compensation or $57,000 for 2020 ($56,000 for 2019)

A Savings Incentive Match Plan for Employees (SIMPLE) IRA plan allows employees and employers to contribute to traditional IRAs set up for employees. It is available to any small business—generally with 100 or fewer employees—not currently sponsoring a retirement plan.

Features of a Simple IRA

Designed for companies with fewer than 100 employees, where the employees fund the bulk of their retirement
Contributions by employees are made on pre-tax basis and accumulate tax-deferred
Owners must begin to take minimum distributions by April 1 a year after they reach 70½
Employers must match contribution up to 3% of employee’s compensation or make a 2% nonelective contribution for each eligible employee
Employee contribution limit is $13,500 for 2020 ($13,000 for 2019)
Employee may contribute an additional $3,000 catch-up contribution if over age 50 by Dec. 31
A 25% penalty tax for early withdrawal if taken prior to age 59½ in addition to ordinary income taxes, or if taken within the first two years of participating in a SIMPLE IRA

GoldStar Trust Company is a proud member of RITA, the Retirement Industry Trust Association. Contact RITA at www.ritaus.org.

STEP 2: Choose your funding

WHICH FUNDING IS RIGHT FOR YOU?

Money in an existing IRA or Qualified Plan (401k or other) can be moved to a GoldStar Self-Directed IRA by a transfer or rollover. Simply open an IRA at GoldStar and authorize the transfer. GoldStar will contact the previous institution and manage the transfer of funds. Special rules apply if you have reached age 72; please check with the previous trustee or custodian to see if there will be fees or penalties.

Direct Rollover

Eligibility for a direct rollover will be determined by your employer or its plan administrator. For your direct rollover to be successful, your employer’s plan and/or the provider of your Qualified Retirement Plan (i.e., mutual fund company, brokerage house, trust company, insurance company) may have additional requirements and/or paperwork necessary to rollover your retirement plan regardless of the paperwork submitted on your behalf by GoldStar. Please contact your current plan provider for their list of requirements. Your Qualified Retirement Plan funds will not be distributed until all requirements are satisfied.

Transfers

Contact your current IRA Custodian or Trustee first and inquire as to what requirements and/or paperwork is necessary to transfer your IRA. Most companies will honor GoldStar’s IRA transfer paperwork signed by you; however, an increasing amount of companies are now requesting verbal liquidation of the account by the customer via telephone prior to the transfer. Please contact your local broker and/or current Custodian to confirm if verbal liquidation instructions are required. Your transfer may not be completed unless this request is satisfied.

STEP 3: Choose your investments

INVESTMENT OPTIONS WE CUSTODY

Self-directed IRAs can be vehicles for alternative investments in a wide range of accounts and assets that you choose. Owning alternative assets in an IRA is easy to do if the custodian you choose specializes in holding the asset you’re interested in. Because different self-directed IRA custodians will accept different types of investments, the key is to find the right company to help you with the process. GoldStar Trust specializes in these and other asset options. If you have an investment option in mind, contact us to learn more. If you don’t see the investment option you’re interested in, contact us to see how we can help you.

Privately Offered Investments

A GoldStar IRA can hold assets such as closely held stocks and LLCs (Limited Liability Companies).

Precious Metals IRA

GoldStar Trust Company is a leading custodian for gold, silver, platinum and palladium bullion.

Real Estate IRAs

Your self-directed IRA can hold real property titled in the name of the IRA or shares of an LLC or LP that owns real estate. GoldStar does not allow the use of single member LLCs, also known as “Checkbook IRAs,” to invest in real property.

Publicly Traded Securities

You can easily buy and sell stocks and mutual funds in your GoldStar self-directed IRA.

REITs

Real Estate Investment Trusts manage income producing properties and distribute most of the profits as dividends.

Crowdfunding

In investment crowdfunding, or equity crowdfunding, investors (the crowd) invest in private companies in exchange for shares or interest paying notes.

Church Bonds

Church bonds can offer an attractive return for the investor while aiding churches to further their ministries.