By J.P. Dahdah, Founder & CEO of Vantage
Setting up any investment account comes with limitations and requirements. Understanding these will help you make the correct investment decisions when deciding how to properly choose a retirement investment account. If you are interested in a Self-Directed IRA account below are two things to keep in mind.
1. Qualifying for an IRA. There is no real qualification process; it comes down to personal preference for those looking to establish a Self-Directed IRA account. While anyone that has earned income can be eligible, suitability can vary depending on which private investments you wish to invest in.
2. IRA limits. It is true that virtually anyone can be eligible to setup a Self-Directed IRA, but there is a limit to the amount of money that you can contribute each year. Because Self-Directed IRAs are tax-deferred, they come with an annual contribution limit. The contribution limit for anyone under 50 years of age is capped at $5,500. The contribution limit for those over the age of 50 is $6,500 annually. It is important that you understand that these limits pertain to IRAs across the board. This mean if you currently have a Roth IRA account that you have contributed $1,500 for this year already, then you can only contribute a maximum threshold of $4,000 if you happen to be under the age of 50. Married couples get the benefit of being able to individually contribute $5,500 each year.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.