Holiday Hours

Let’s all enjoy this wonderful holiday season.  Please note our holiday business hours.

Holiday Hours (PST)December 25, 2008 Closed
December 26, 2008 Closed

December 29, 2008 8:00am-5:00pm
December 30, 2008 8:00am-5:00pm
December 31, 2008 8:00am-5:00pm
January 1, 2009 Closed
January 2, 2009 8:00am-5:00pm

New Toll Free Number

Provident Group has a new toll-free number and we want YOU to use it! 

888-855-9856

You can still reach us on our local number (702) 434-0023. Please don’t hesitate to contact our customer support team for any additional information or to open a new account.

As an additional reminder.  Please note our new addresses.

Physical Address: (Overnight Mail)
Provident Group, LLC
8379 W. Sunset Road, Ste 2000
Las Vegas, NV 89113

Mailing Address:
Provident Group, LLC
7345 S. Durango Dr., B107-356
Las Vegas, NV 89113
T:888.855.9856
T:702.434.0023
F:702.253.7565

A Savvy Investor’s Little Known Secret

Moving into the 21^st century, there has been a growing trend towards self-directed IRAs.  Due to economic concerns gripping America, people are no longer depending on traditional methods to invest in IRAs.  People want to make their own decisions.  They are moving away from mutual fund managers and the volatile stock market.  Self directed IRAs allow the investor to make their own decisions in firm investments of traditional and non-traditional assets.

 

Over 46 million Americans have an IRA accounting for over $4.75 trillion.   In October of 2008, Congress’ top budget analyst reported a $2 trillion loss in Americans retirement plans.  Many people are suffering from losses in their traditional IRA.  There is a strong trend developing using the self-directed IRA for portfolio growth.

 

Some people are surprised by all the different plans that can rollover to a self-directed IRA.  The following plans are all eligible to rollover to a self-directed IRA:

l        Traditional IRA

l        Roth IRA

l        SEP-IRA

l        Simple IRA

l        Coverdell Education Savings Account (ESA)

l        Health Savings Account

l        Defined Benefit Plan

l        401(k) or individual (k)

 

Traditional IRA

 

Individual Retirement Arrangements (IRAs) were created by the Employee Retirement Income Security Act (ERISA) of 1974.  An IRA acts as a personal savings account that allows you to contribute annually for your retirement savings. It provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of IRA accounts, though traditional and Roth IRAs are the most common.

 

There are many benefits to having a traditional IRA.  Traditional IRAs provide an additional source of income at the time of retirement.  They can provide possible deductions in yearly taxes.  One of the major draws to a traditional IRA is that they are tax deferred until distributed.

 

Roth IRA

 

The Roth IRA launched the most significant change in retirement plans since the IRA was first introduced in 1974.  The Roth IRA was introduced in 1997 through the Taxpayer Relief Act of 1997.  While Roth IRA contributions are not tax-deductible, after a five year holding period a Roth owner can take certain qualified distributions that are nontaxable.  There are no required minimum distributions, and one may continue to to make the contributions past the age of 70 ½.  While there is not a deduction when contributions are made, the advantage is all earnings are tax free when you withdraw them.

 

 

SEP IRA

 

A Simplified Employee Pension Plan, commonly known as SEP-IRA, is a retirement plan designed with the self-employed and small business owner in mind.  They are most commonly set up by business owners that have no employees.  A SEP IRA is especially attractive because it allows high annual contributions that are discreet and flexible with minimal administration. 

 

Simple IRA

 

The Simple IRA is particularly attractive because it allows simpler and less costly administration rules.  The word Simple is actually an acronym for “Savings Incentive Match Plan for Employees.”   This employee sponsored and administered plan is rapidly becoming popular.  They are designed to help make it easier for small businesses to offer a retirement plan.  It remains 100% in effect over a lifetime.  It also permits employees to contribute up to 100 %, but no more than $6,500 per year, into an IRA. Separate rules relative to required employer contributions and premature distributions apply.

 

Coverdell Education Savings Account (ESA)

 

Once known as the Education IRA, the name changed due to the fact that these plans have nothing to do with retirement.  The earnings in the account grow tax-free as long as distributions are used for eligible expenses which are not limited to college costs. It is a less known fact that these funds can also be used to cover costs associated with attending elementary or secondary school, be it public, private, or religious. These costs can include uniforms, computers, and transportation. The beneficiary is eligible to receive this money when they reach the “age of majority.”  The funds must be used by the time the beneficiary turns 30, but they may be turned over to another relative.

 

Health Savings Account

 

Health Savings Accounts (HSAs) were established in 2003 as a tax advantaged medical savings plan for high-deductible health insurance plans.  Investments can be made just like an IRA.  When funds are withdrawn, they are not subject to taxation if they are a qualified medical expense.  If withdrawals for non-medical expenses are made before the time of retirement, they are treated just like penalties for an IRA.

 

Defined Benefit Plan

 

Many people consider a Defined Benefit Plan to be synonymous with a traditional pension plan.  The employer is usually responsible for making all investments.  In some cases, the employee may make a contribution.  The employer assumes all investment risk.  Benefits may be provided in a lump sum or made as monthly payments.  In some cases, the plans may be to the spouse if the employee passes away.  The distribution plans vary.

 

401 (k)

 

The 401(k) was amended to the Internal Revenue Code in 1978 by Congress.  This law went into effect on January 1, 1980 making it possible to defer taxes on deferred compensation.  These are similar to an IRA except it is established by the employer.  Although these work like an IRA, there are added benefits.  The employer may choose to match the funds dollar to dollar or maybe a percentage of the funds.  Some employers require a period of time for employment to be established, and then start to match funds.

 

 

Individual 401(k)

 

If you own your own business and have no employees, this may be the plan for you.  Contributions to this plan mirror the SEP IRA, however there are some significant differences.  The main differences are that an Individual 401(k) allows for part of the contributions to be considered Roth contributions and the business owner can allow for personal loans to be taken from the plan.

 

Contributions can be made up to 100% for the first $15,500 or $20,500 if you are 50 or older.  In total, up to 25% of your self-employment income can be contributed not exceeding $46,000 or $51,000 if you are 50 or older. 

 

The deadline for setting up an Individual 401(k) is December 31^st although you may make your contribution up to your tax filing deadline.

 

What You Need to Know About Self-Directed IRAs.

 

It is a little known fact that self-directed IRAs have been available since the creation of traditional IRAs.  Many investors are disenchanted with the current state of traditional investments available through typical retirement plans like an IRA or 401(k). 

 

In the past, over 97% of retirement accounts have been dictated by the traditional investments available in the market.  This has been largely controlled by fear of the unknown.  Traditional custodians and brokers have falsely claimed that self-directed IRAs are too complicated, risky, and illegal.

 

More and more people see the current state of the economy with the sub-prime mortgage debacle, near collapses by behemoths in banking and insurance as well as a plummeting stock market and shrinking retirement accounts.  People want to take back control of their investments. Investment News reported a projection of a 10-12% increase in IRA rollovers from 2007-2010 in their September 2007 issue.

 

Many people are turning their attention to the multitude of investment options with the self-directed IRA including:

l          Residential and Commercial Real Estate

l          TICs (Tenants in Common)

l          Tax Liens, Tax Deeds

l          Mortgages, Loans, Notes

l          Real Estate Options

l          Life Settlements

l          Small Businesses, Franchises

l          Private and Publicly Listed Stock

l          Limited Liability Companies

l          Limited Partnerships

 

IRA investment regulations are largely concerned by what you can’t do with them rather than what you can do.  This is what makes self-directed IRAs of non-traditional investments possible.  There are very few prohibited transactions:

l        life insurance for yourself

l        collectibles

l        metal, gems, and stamps

l        rugs and antiques

l        coins

l        artwork

l        alcoholic beverages

l        Sub Chapter S Corporations.

 

Setting up a self-directed IRA is simple.  The IRS requires a custodian to administer the retirement funds.  After the funds are moved to a non-traditional custodian, you direct your funds to the investment of your choosing.  The custodian will facilitate the investment purchase as required by IRS code.  If setting up legal services, such as an LLC is necessary, they can also assist with that.  Once investments are made the custodian will administer the account and hold the investment documents for safe-keeping.  Any profit or income from the investment goes directly back to your IRA account, tax free.

 

Administrators, like Provident Group, http://www.providentira.com , offer a full range of services for self-directed IRA accounts.  Specializing in the process of self-directing retirement funds, they can help you make the most of your money by investing in what you know.  With a self-directed IRA, you can take control.

 

“Everyday Americans are fed up with the failures of so-called financial wizards,” Provident Group Board Member, Frank Spady, said. “People want to be accountable for and control their own investment destinies. With self-directed retirement accounts they can do just that.”