1. Why haven’t I heard about flexible IRA investing before?

Brokerage companies earn commissions when you buy and sell stocks, bonds, and mutual funds. They don’t make money when you buy real estate. Further, very few custodians are interested in holding "non-traditional" assets they don’t understand. Finally, the industry is small.

Absolutely. In 1974, the Employee Retirement Income Security Act (ERISA) gave all self-directed retirement plans this option. In addition to real estate, you can direct your IRA investments into, among other things, mortgages, notes, tax liens, and private businesses. There are restrictions on some investments, but Adelphi will help you navigate through them.

A "rollover" occurs when an individual requests a distribution from an IRA/QRP (Qualified Retirement Plan) and then "rolls" the assets into another IRA. An individual is limited to one rollover per year. A "transfer" is when IRA assets are moved directly from one financial institution to another without the IRA owner taking possession of the assets. Unlike rollovers, there is no limit on how many transfers can be executed in a year.

You can use the equity in the property you expect to purchase to borrow funds on a non-recourse basis. Adelphi can direct you to non-recourse lenders that can assist you with the non-recourse process. Private financing and seller financing are additional options for IRA investing. Furthermore, you can pool your IRA’s funds with those of other people, other IRAs, or even your personal funds to buy large properties (i.e. commercial properties).

You cannot invest in Life Insurance Contracts or Collectibles (as defined by the IRS). Also, you may not participate in prohibited transactions.

IRA transactions must be for the exclusive benefit of the retirement plan and must not directly or indirectly benefit the IRA owner. For example, the owner cannot:
a. Borrow money from his IRA
b. Buy property for personal use with his IRA funds
c. Use IRA assets to secure a loan
d. Sell property to his IRA

Once you send Adelphi Retirement Management documentation regarding your proposed transaction and the persons to whom funds are to be sent, Adelphi will send checks overnight or wire funds for you within hours of your call.

All money generated from an investment owned in an IRA must be deposited back into the IRA. Of course there is no income tax on this profit until the IRA begins its annual distributions. However, investors may incur unrelated business income tax (UBIT) on a portion of their investment income if the investment was made using borrowed funds.

There are many potential pitfalls with respect to both prohibited transactions and timely reporting at the state and federal levels. Adelphi Retirement Management's specialty is structuring transactions in "safe harbors" to avoid such problems and ensure statutory compliance.

You do. Your account is truly "self-directed," which means that you make the investment decisions for your retirement assets in much the same way as you invest outside of your retirement plan. But you don’t invest alone. Adelphi Retirement Management will help you navigate the complex rules that govern prohibited transactions so you can focus on making the best investment decisions.

Your assets are co-managed by you and Adelphi Retirement Management. You make all investment decisions, and we take care of all of the paperwork and reporting details. Once you make an investment, Adelphi Retirement Management will keep your books and records, coordinate the custodianship of your assets, oversee the annual asset valuation, and file all required annual reports.

There are many advantages to using an LLC to own your IRA’s assets. The LLC structure offers maximum investment flexibility, provides asset protection, allows for “checkbook control”, simplifies asset titling, eases pooling of assets, and enables immediate response to investment opportunities.

Yes. You and your IRA can purchase an investment together. However, since you cannot sell property to your IRA, transactions between you and your IRA involving an asset after that asset is purchased are prohibited.

Adelphi Retirement Management is proud of its superior customer service. We have full-time CPAs and attorneys on staff who are available to answer your technical questions at any time. Adelphi also provides frequent webinars and other educational events for our clients and their professional advisors.

Adelphi Retirement Management's has an initial fee that covers the setup of yourself directed IRA’s LLC and all associated transactions and documentation, and we have an all inclusive yearly administrative fee.

No. Your IRA can purchase real estate anywhere