Access the largest knowledge base for Self-Directed IRAs. Expand your investor knowledge with articles,
For 40 years, The Entrust Group has provided account administration services for self-directed retirement and tax-advantaged plans. Entrust can assist you in purchasing alternative investments with your retirement funds, and administer the buying and selling of assets that are typically unavailable through banks and brokerage firms.
A traditional IRA allows you to make pre-tax contributions toward your retirement. The funds grow tax-deferred. Any interest, capital gains, or dividend income from the original funds will grow tax-deferred until withdrawal.
With a self-directed traditional IRA at Entrust, you have the freedom to invest your retirement funds in alternative assets and investments that inspire you.
You’re eligible for a traditional IRA if you’ve received taxable compensation during the year. If you and your spouse have both received compensation during the year, you can each establish an IRA. However, if filing a joint tax return, only one spouse is required to receive compensation and they can contribute on behalf of the other spouse.
Before making contributions to a traditional IRA, learn the contribution limits that apply:
A Roth IRA is an individual retirement account that is funded with post-tax dollars. The tax benefit of a Roth IRA is that all earnings, including interest, capital gains, etc., grow tax-free. You pay income taxes on your initial contributions.
There are several exceptions that allow you to make a penalty and tax-free withdrawal from a Roth IRA. You can distribute your account earnings tax-free and penalty-free if you satisfy the five-year period and meet one of the following reasons:
The five-year period means its been at least five years since you have contributed to your first Roth IRA. The clock for the five-year period begins as of January 1 of the year for which a contribution was made. For example, if you make a contribution in July of 2024, the clock started as of January 1, 2024.
You may contribute to a Roth IRA if the following requirements are met:
If you and your spouse have received compensation during the year, you can both contribute to your own Roth IRA. However, if you are filing a joint tax return, only one of you is required to have compensation, and you can contribute on behalf of your spouse.
Before making contributions to a Roth IRA, learn the contribution limits that apply:
Here are the key differences between Roth and Traditional IRAs:
Earnings can be withdrawn tax-free after certain requirements are met. The difference between traditional IRAs and Roth IRAs lies in their tax advantages.
When evaluating which account is best for you, ask yourself if you expect your tax bracket to be lower or higher in retirement. In any case, consult your tax or financial advisor to make sure you make the best decision based on your financial situation.
An Individual 401(k), also known as a Solo 401(k), is a retirement account for sole proprietors who employ only themselves, their spouse, or other owners. This plan allows maximum deductions and contributions for retirement.
An Individual 401(k) plan has two components based on your role as both employer and employee:
With Entrust, you can establish either a Roth or Traditional plan. The Traditional Individual 401(k) is a tax-deferred plan, which reduces your taxes now and offers tax-deferred savings. With the Roth, you make after-tax contributions to the account, and future withdrawals are tax-free.
You’re eligible for an Individual 401(k) if these requirements are met:
Before making contributions to an Individual 401(k) Plan, learn the contribution limits that apply:
A Health Savings Account (HSA), is a tax-advantaged savings plan you can use to pay for medical expenses, such as prescriptions, eye care, dental, and some over-the-counter medications.
To qualify for an HSA, you must meet these requirements:
Before making contributions to an HSA Plan, learn the contribution limits that apply:
An Education Savings Account (ESA), also known as a Coverdell Education Savings Account, is a tax-free way to save for a child’s education. By opening a Self-Directed ESA, you have the ability to grow the account faster than through traditional investments.
To establish an ESA, these requirements must be met:
Want to take this information with you? Download the Account Guide for easy reference.
Once you’ve identified the best account for you, check out our Funding webpage to learn the different funding methods.
