With the end of 2015 fast approaching here is a brief checklist of things you may want to take care of before year end.
Most companies in the self-directed retirement space are also in agreement that one of the best investments for retirement accounts are passive, cash flow investments such as real estate notes. This is why Eddie and I have spent years building our retirement account with performing notes.
There are several factors that have allowed us to build retirement accounts that are unique advantages for us and to passive investors buying partials.
- Flexible Spending
- Use it or Lose it. Flexible Spending is for medical expenses but must be used by year end.
- Maximize tax advantage 401K, 401K Solo and IRA accounts
- Opening by December 31, 2015 counts as 1 year toward the 5 year clock for withdrawals.
- If you are over 50 you may qualify to contribute as much as $6,500. to an IRA or $23,000. to a 401K plan based on adjusted gross income.
- The 401K Solo and SEP IRA’s allows for the highest contribution levels if you qualify as a small business owner.
- Check with one of our preferred Custodians to determine your annual contribution limits and options.
- Required Minimum Distribution (RMD)
- Don’t forget to complete forms & instruct your custodian to pay Required Minimum Distributions.
- RMD for an inherited IRA
- If you’re age 70.5
- If you turned 70.5 during the year, you are not required to take the RMD until next year. However, if you wait until 2016 to take your 2015 RMD plus the RMD at the end of 2016, will this put you into a higher tax bracket?
- Roth Conversion?
- If you expect to keep moving into a higher tax bracket think about converting your Traditional IRA to a Roth IRA or open a new account before your pay scale increases.
- Coverdell Educational Savings Account
- This tax savings account can be passed down generation after generation.
- 2015 contribution is $2,000.00
- HSA Heath Savings Accounts (HAS)
- Did you know you can use the money in your HSA to make investments?
- If you have a high deductible health plan open a HSA. The 2015 Contribution is $6,550. per household plus $1,000. catch up contribution over 55 for each spouse.
- The total contributions plus profit on investments can be distributed at age 65 tax free & penalty free for qualified medical expenses.
- You may also make a transfer from a Traditional IRA to your HAS once in a life time.
- Are you an accredited Investor?
- Looking for a high yield passive investment? Call 888-633-1113today and speak with one of our fund managers about the earning potential in Colonial’s Capital Fund!
- Review and Balance your investment portfolio
- Have you meet your target investment goals for 2015?
- If not, analyze your portfolio to know if you have underperforming assets that might offset gains.
- Is your money in a self-directed retirement account not earning any interest?
- Maybe you never got around to ever making an investment in 2015?
- Don’t let your investment dollars sit idle. Put you’re dollars to work, buy a performing note, invest in a partial with us, get your money working for you creating cash flow before the end of the year!
- Charitable donations
- Charitable donations can help you lower your tax bill. Make sure you contribute to a qualified organization and get tax receipts.
- Most importantly it’s the best time of the year to give of your time, money and talent to those less fortunate than yourself.
- Other areas to consider
- Is your Will and your beneficiaries up to date?
- Do you need to set a holiday budget for this year or a house hold budget for 2015?
Self-Directed Retirement Administrators agree Real Estate Secured Notes are one of your best investments to grow your account!
Happy Holidays to everyone! Wishing you a happy, healthy and prosperous new year!