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Saving for Retirement? Make Sure You Save for Long-Term Care.

Saving for Retirement? Make Sure You Save for Long-Term Care.

If you’ve been saving diligently for a comfortable retirement, our hats are off to you! You can look forward to traveling, new hobbies, all those books you want to read, volunteering your time, and other ways you envision the perfect retirement.

One item you might not be considering is potential healthcare needs; are those factored into your retirement budget? Specifically, the costs of long-term care?

While medical insurance (Medicare plans, supplemental health plans) and funds from your health savings account cover many healthcare costs, the Nationwide Retirement Institute’s Long-Term Care Survey suggest concern among many U.S. adults about how they will handle the high costs of long-term care, should they need it.

 

Types of long-term care expenses

The National Institute on Aging outlines several long-term care models comprising home-based care by informal caregivers (family and friends) or by paid caregivers (nurses, home health aides, therapists, other professionals); and community and residential care such as adult day care and senior centers, assisted living residences, and nursing homes. Aside from personal care support that aging adults may require, there could be expenses associated with medical equipment, medication assistance, meal programs, housekeeping, and of course, the cost of living in an assisted living or nursing home environment.

 

Concerns regarding caregiving costs

With many older Americans experiencing the conflict of trying to manage their retirement goals while juggling the responsibilities of caring for elderly relatives, it’s no wonder the survey revealed that 40% of U.S. adults are worried that long-term care costs (not necessarily their own) may keep them from retiring. Some statistics from the survey point to concerns about caregiving expenses:

• Forty-three percent are concerned that those costs will prevent them from retiring.
• Fifty-six percent are willing to take a loan from their retirement account to pay for a relative’s caregiving expenses.
• Forty-two percent reported they’ll probably have to use funds they’d earmarked for their children if they ever have to take on caregiving duties.
• Average monthly out-of-pocket expenses are $338 to pay for co-pays, medications, and transportation.

Additionally, only 17% of respondents had discussed long-term care planning with a financial professional and just 20% had purchased long-term care insurance (with many unclear or making wrong assumptions about the actual vs. presumed cost of those premiums). You can read the full survey results here.

Bear in mind that Medicare does not cover assisted living or nursing home expenses, and depending on your insurance plan, you may or may not have any coverage for paid care in the home. Estimates of how much a person needs in retirement to cover “ordinary” medical expenses are in the $150-160,000 range so health care—especially long-term care—is a critical budget line item!

 

Enhance your long-term care coverage—boost retirement savings with a self-directed IRA

You’re already saving for retirement; why not turbocharge your account and prepare for long-term care costs through self-direction?

If you are comfortable making your own investment decisions, doing the research and due diligence about investments, and already know and understand alternative assets, you can include these in your self-directed IRA. You’ll build a more diverse portfolio and a hedge against market volatility with non-publicly traded alternative assets that are not correlated with stock market performance.

Real estate, precious metals, private equity, commodities, unsecured and secured loans, and more are all alternative assets that are allowed within self-directed plans. In fact, if you’re already investing in these outside of your existing retirement plan, you’re already a step ahead!

TIP: You can also self-direct an HSA and after you enroll in Medicare, you can use the funds in the health savings account for non-medical expenses (although you be taxed on those distributions).

 

Give long-term care a run for its money

Open and fund a self-directed IRA and/or HSA today. At Next Generation, we make it easy, with starter kits that walk you through all the steps, and a helpful team of professionals available by phone at 888.857.8058 or email at NewAccounts@NextGenerationTrust.com. We also encourage you to schedule a complimentary educational session to learn more about self-direction as a retirement wealth-building strategy.

Americans’ Favorite Long-Term Investment is Real Estate – the Most Popular Asset Class in Self-Directed IRAs

A survey from Gallup showed that Americans feel the best long-term investment is real estate. The organization’s annual Economy and Personal Finance survey was conducted in April; 36% of this year’s respondents chose real estate over stocks, bonds, savings accounts, gold, and cryptocurrency. Real estate was selected by between 30% and 45% of respondents every year in the Gallup survey since 2014. The survey is intended to provide a look at sentiments among typical investors.

Real estate’s top rank is no surprise, given that returns on investments in this asset class have been about 215% since 2000; this is according to the S&P CoreLogic Case-Shiller home index, which tracks changes in residential real estate values nationwide. Historical rises in home values may feed the taste for real estate investments. Again from a Gallup poll, 68% of U.S. adults expect home prices in their area to increase in the coming year—up from 56% a year ago.


Real estate as a self-directed investment

Did you know that real estate is the most popular alternative asset in self-directed IRAs? Real estate investments include:

-Vacation property

-Multifamily property

-Private REITs

-Foreign property

–Distressed properties

-Farmland

-Raw land

-Rehabs

-Funds that invest in real estate

-Self-storage facilities

-Warehouses

 

Why real estate is such a popular investment

People who invest in alternative assets—such as real estate—know that these investments are an excellent way to diversify their retirement portfolios and hedge against inflation. Other reasons for real estate’s popularity are:

 

Buy & hold for long-term gains

Real estate investors that hold rental properties within their self-directed IRA typically fall within the “buy & hold” camp investing strategy, in which the self-directed IRA generates recurring rental income during the hold period (usually five or more years). This long-term strategy enables account owners to build tax-advantaged wealth within their retirement plan, as investors benefit from property appreciation and—as noted above—build a hedge against stock market volatility and inflation. This differs from the short-term fix & flip strategy of buying a distressed property to renovate and sell it right away at a higher market value.

 

Get started with a self-directed IRA at Next Generation

Next Generation provides full account administration and asset custody for the alternative assets our clients include in their self-directed IRAs. We also offer client education with webinars, white papers, and complimentary educational sessions, which you can schedule here. If you prefer, you can always contact us at NewAccounts@NextGenerationTrust.com or by phone at 888.857-8058 to get answers to your questions about self-direction as a retirement wealth-building strategy.

Prepare For Smaller Social Security Benefits When You Retire: Funding a Self-Directed IRA Can Help Shore Up Retirement Savings With Investments in Alternative Assets

The Social Security Bill was signed by President Roosevelt in 1935 during the Great Depression. It established two types of financial safety nets for old-age security: (1) federal aid to the states to provide cash pensions to their needy aged (immediate assistance to the financially destitute elderly), and (2) a system of federal benefits for retired workers (a preventive measure to assure workers of a life income and reduce the potential of future dependency among the aged).

That was a long time ago and a lot has changed over the past 89 years. The Social Security Trust Fund is not as robust as it once was. When the legislation was signed in the 1930s, the historic grey wave of baby boomers who began retiring and/or collecting benefits in 2010 hit the program hard and continues to drain the coffers; and the number of aging beneficiaries relative to younger workers contributing to the program is out of balance, further exacerbating the situation.


Current Social Security status

An analysis by the Committee for a Responsible Federal Budget (CRFB) projects a budget shortfall of 4.9% of taxable payroll over the next 75 years. That’s a long time horizon but the steps being discussed today will affect near- and current retirees.

Without legislative action, lower monthly benefits lie ahead. For most middle-income Americans and even the more affluent, reduced Social Security benefits in retirement will hurt. The Center on Budget and Policy Priorities notes that about half of all seniors get at least 50% of their retirement income from Social Security, so for many, it represents far more than a retirement supplement. This is especially true as employer-sponsored pensions (defined benefit plans funded by the employer) are being phased out.


Boost your retirement savings with a self-directed IRA

As Generation X nears retirement—and even as millennials look ahead a few decades—they are right to be concerned about how healthy the Social Security fund will be when it’s their turn to collect. The lower benefits will put more financial burden on them to save more for retirement.
Funding an IRA regularly with maximum contributions every year is one way to supplement Social Security benefits. And if you are savvy about alternative assets, you can open a self-directed IRA and provide an additional boost to your retirement savings.

Self-directed IRAs (as well as self-directed health savings accounts and education savings accounts) allow account owners to include a broad array of alternative assets within their plans—with returns that are not correlated with the stock market. This enables investors to use what they already know and understand about different asset classes to build a more diverse portfolio and retirement wealth through a tax-advantaged plan.

In a self-directed IRA, investors can include real estate, private equity funding, royalties, mineral rights, precious metals, cryptocurrency, and many more nontraditional investments. Want to know more about how you take control of your future through self-direction? Watch some of our webinars, sign up for our newsletter, or schedule a complimentary educational session. Our team is also available by email at NewAccounts@NextGenerationTrust.com or by phone at 888.857.8058.

Using a Self-directed IRA to Invest in Distressed Commercial Property

High-net-worth families can build multi-generational wealth through the alternative assets allowed through self-direction

From suburban office parks to metropolitan office buildings to shopping malls, it’s no secret that plenty of distressed commercial property is available on the market today. The work-from-home and online shopping trends that began before the Covid pandemic contributed to the emerging decline of commercial property tenancy; this accelerated greatly during and after the pandemic, leaving commercial property owners with real estate ripe for investment by other parties—including investors with self-directed IRAs

The downhill slide in the commercial property landscape

According to MSCI, declining asset valuations and transaction volume have also contributed to the growing pool of distressed commercial properties in the U.S., as have loans that are facing maturity (the Wall Street Journal reported that over $2.2 trillion in commercial mortgages is scheduled to mature by the end of 2027). Some statistics about commercial properties as shared by MSCI are:

Further, Crain’s New York Business reported in February 2024 that:

Additionally, a CoStar report cited increasing delinquency rates among office building owners, from .57% in January 2023 to 6.28% in January 2024. The firm noted this is the longest period of increasing delinquency rates since 2019.

While this all sounds dire for commercial property owners, the current environment lays the foundation for savvy investors interested in commercial real estate—an alternative asset allowed in a self-directed IRA.

Including distressed commercial property investments in a self-directed IRA

Real estate provides a long-term investment with returns derived through asset appreciation and the potential income from investment properties. It is also the most popular alternative asset in self-directed IRAs. As our CEO Jaime Raskulinecz shared in this recent Forbes Finance Council article, one can invest in various types of commercial real estate using a self-directed IRA. In addition to office buildings and multifamily properties (condos and rentals), warehouses and industrial properties, self-storage facilities, strip malls and shopping centers, and hotels are other types of commercial property ripe for investments.

While many investors include vacation property, rehabs, farmland, and raw land within their self-directed IRAs, they can also add commercial real estate classes in several ways, both directly and indirectly.

1 – The self-directed IRA invests in the property using cash from the account or with a non-recourse loan

2 – The self-directed IRA issues a mortgage loan to a commercial property owner (mortgages are another alternative asset allowed in these plans)

3 – The IRA invests in a real estate fund

4 – The IRA partners with another account or individual to make the investment.

5 – The self-directed IRA participates in private equity funding that focuses on commercial real estate

6 – The IRA invests in debt funds associated with real estate assets

As with all self-directed investments, the income and expenses related to the assets flow through the account (no self-dealing allowed!). In the case of loans, the terms are worked out between the lender (the IRA) and the borrower (the property owner). When selling a hard asset (property vs. shares in a fund), the account owner must agree on the price and terms with the buyer. Once an agreement is reached, the account owner sends instructions to the IRA custodian (such as Next Generation Trust Company) to sell the property on behalf of the self-directed IRA. The proceeds go into the IRA as tax-deferred or tax-free income (depending on the account’s structure).

Investing in real estate? Next Generation is here to help.

At Next Generation, we work with many clients who include real estate investments within their self-directed plans. We also provide client education about investing in alternative assets through self-direction. We invite you to watch this webinar, which details how to leverage your retirement plan with real estate investments. You may also schedule a complimentary educational session with one of our self-direction pros to get answers to common questions about this retirement wealth-building strategy. As always, our team is available by phone at 888.857.8058 or by email at NewAccounts@NextGenerationTrust.com.

Why Family Offices Should Consider Investing Through Self-Directed IRAs

High-net-worth families can build multi-generational wealth through the alternative assets allowed through self-direction

One of the prime activities of family offices—the private wealth management firms that work with high-net-worth individuals or families—is to help clients preserve and generate wealth for current and future generations. This may include financial planning and advice, asset management, estate planning, and lifestyle management for the wealthy.

As part of their financial services, high-net-worth family offices can incorporate self-directed IRAs as part of their clients’ investment strategy.

 

Benefits of Self-directed IRAs for family offices

As with any IRA, all self-directed IRAs may be Traditional or Roth and are tax-advantaged accounts. That’s where the similarities end.

 

 

 

 

Considerations regarding self-direction for family offices

As the name connotes, “self-direction” means that investors make all their own investment decisions. Whether family members or trusted advisors are the ones calling the investment shots, bear in mind that this strategy requires more due diligence by the account owner when it comes to selecting investments. This includes knowledge about particular asset classes.

Members must be careful about self-dealing and prohibited transactions, which will disqualify the IRA’s tax-advantaged status.

Family offices—like any investor—are advised to select a custodian with experience handling self-directed IRAs and the alternative asset classes they allow. When researching custodians, don’t be afraid to ask questions about the services offered, assets under management, or expertise with certain assets.

 

Working with Next Generation

As a custodian of alternative assets within our clients’ self-directed retirement plans—and a sister firm that specializes in comprehensive account management—Next Generation Trust Services provides expert custodial services and client education about the many options and benefits of these plans.

We have 20 years of experience working in the self-directed IRA space and with the many alternative assets our clients invest in. Our team executes all transactions upon clients’ instructions and our transaction vetting system is in place to flag any potential issues that may violate IRS regulations. We file all mandatory paperwork associated with the accounts and prepare the required reports for tax purposes.

Our convenient starter kits are always available online with step-by-step instructions on how to open and fund a self-directed IRA. We invite you to learn more in a complimentary educational session, or you may contact us at NewAccounts@NextGenerationTrust.com or 888.857.8058 with your questions.

Envisioning the Perfect Retirement…and How a Self-Directed IRA Can Help Get You There

As custodians of self-directed IRAs, we know it’s never too early to plan for retirement. Even if you are in your mid-thirties and enjoying your work, we hope you are saving for those later years with a retirement plan (whether employer-sponsored or through an IRA).

Naturally, as we all get older and retirement is more firmly in our sights, visions of what that looks like come into view.

What does the perfect retirement look like to you? Here are some lifestyle suggestions to consider.

 

To work or not to work

Many people continue to work throughout those later years, even after they’re eligible to collect their Social Security benefits. Some do so out of financial necessity while others choose to because it’s how they prefer to spend their time.

Retirement from one career enables you to try something new, perhaps as a part-time vocation. For example, professionals often supplement their retirement income by applying their knowledge and expertise as consultants in their field, taking clients when they want to.

Once you step off the career ladder, there are plenty of fresh job opportunities related to your hobbies or interests that give you something to do a few times a week. Do you love to knit and spend time (and money) at the yarn store? Maybe the owner needs some help. Are you an avid do-it-yourselfer? A home improvement center may welcome your knowledge and passion on the selling floor. You get the idea.

Speaking of hobbies and interests, retirement is a great time to indulge them any time. From stamp collecting to gardening, dance lessons to art classes, there is now plenty of time to enjoy what you used to consign to your days off—IF you had the time.

 

Volunteer

You may wish to donate some of your time to causes and charities you support. Nonprofits are always looking for volunteers in various capacities and they can always use your time and talent. Join the fundraising committee, work in the thrift store, make phone calls, or do office work—there’s always somewhere to contribute something besides money.

 

Lifelong learning

Many community colleges, public libraries, and community schools offer courses on a broad range of topics. Take some! Is there a degree you didn’t pursue or finish? There’s no time like retirement for crossing that off your list. The good news is, now you can keep going “back to school” as often as you’d like, just for the fun of it. There are also specialty travel companies that cater to older adults who want to combine worldwide travel with educational lectures and enriching discussions.

 

Start fresh in a new place

If you have a second home in a vacation area, it might be time to sell your primary residence—and be on vacation all the time. If you’ve always longed to live at the beach, in the mountains, or in a country club community, now’s the time to make your move!

If you’re tired of the ‘burbs or want to get out of the city, explore different areas and consider moving somewhere new that offers activities and an environment more suited to this phase of your life—including a foreign country.

 

Plan for the perfect retirement with a self-directed IRA

Although the “perfect” retirement is subjective, one thing is sure: it’s going to take more than your Social Security benefits to bankroll your retirement years (and all the fun you’re planning to have!), possibly for several decades.

Funding a self-directed IRA during your earlier working years, and including the alternative assets these plans allow, can help generate the savings you’ll need to live it up during retirement. With a self-directed IRA, you will diversify your retirement portfolio, build a hedge against market volatility, and be positioned to take advantage of investment opportunities more nimbly.

As a self-directed investor, you’re in charge of selecting the nontraditional investments that will get you to your retirement savings goals. If you’re comfortable making your own investment decisions and conducting your due diligence and research about the many alternative assets allowed in self-direction, consider making a self-directed IRA part of your plan for that perfect retirement now, and build those tax-advantaged savings for many rainy days ahead.

Need some more information about this strategy? Register for a complimentary educational session with Next Generation, or contact our helpful team at NewAccounts@NextGenerationTrust.com or 888.857.8058.

American Expats – Yes, We Can Administer Your Self-Directed IRA!

Americans who live out of the U.S. are often turned away from retirement plan administrators and custodians who balk at working with someone with a foreign address. Whether they live overseas, in Canada, Mexico, Central America, or South America, the team at Next Generation Trust Company works with American expats as long as they have domestic (U.S.) retirement plans and funds.

Anyone living out of the country who wants to self-direct their IRA, or whose existing custodian has declined their account or has asked them to find a new custodian, is welcome to work with us. We follow all the Know Your Customer guidelines as proscribed by FINRA before we take on a client with an international address. Investors anywhere can build tax-advantaged retirement wealth through alternative assets they know and understand by including them in a self-directed IRA. We’re here to help.

You only need U.S. funds to invest, regardless of your country of residence. Like those of us living stateside, you may have both a Traditional and Roth IRA.


Worldwide clientele, worldwide investments

Your self-directed investments need not be only on U.S. soil. We work with clients who live all over the world and whose investments are overseas (often real estate). Rest assured, if you wish to use alternative assets within a U.S.-based self-directed IRA to build a more diverse retirement portfolio—regardless of where you live—Next Generation will work with you as the self-directed retirement plan administrator and custodian.

For example, let’s say you have decided to move to Costa Rica, one of the most popular destinations for American expats. You have a self-directed IRA that we administer and through which you invest in precious metals, real estate, private equity funding, royalties, or other nontraditional investments—here or abroad. Next Generation executes the transactions upon your instructions (after thoroughly reviewing the transaction), holds the assets, and handles all the required paperwork associated with your account.

 

Contributing to your self-directed IRA when living abroad

If you have earned U.S. taxable income or have met other eligibility requirements, you can make contributions to your self-directed retirement plan. There are some stipulations about foreign income you earn and deductions you claim, which you can discuss with your trusted advisors. There are also income limitations on Roth IRAs.

We recommend you consult a tax advisor who is knowledgeable about foreign taxes and the different foreign tax credits to ensure you can contribute to the IRA if you wish—and do so in a way that does not trigger unexpected tax liabilities.

 

American expats: open a self-directed IRA with Next Generation

No matter where you are living, Next Generation can assist you with opening a self-directed IRA here in the States. Our starter kits have step-by-step instructions for all types of retirement accounts. Or you can reach us by phone (Eastern time zone) at 888.857.8058 or by email at NewAccounts@NextGenerationTrust.com.

 

We also have a text chat on our website homepage. If you launch a chat after our normal business hours, we will see your message as soon as we return and respond to your inquiry.. We look forward to assisting you with your self-directed retirement plan, wherever you are. All we ask is that you send us a postcard now and then!

Financial Planners: Expand Your Practice Through Consultation on Alternative Assets

Next Generation Offers Fee-Based, Independent Financial Advisors New Investment Horizons for Clients, and a New Income Stream

Trusted advisors, financial planners, and CPAs who do wealth management are consulted by clients about retirement plans and how to develop the best portfolio—and long-term financial plan—for their specific circumstances. Understanding the many options and benefits of self-direction as a retirement wealth-building strategy helps financial advisors add value to their client-advisor relationship … and add potential additional income for themselves. Here’s how.

Self-directed plans open up investment horizons

Clients can open a self-directed IRA of any type (Traditional or Roth, SEP or SIMPLE), as well as HSAs and ESAs (Coverdells) and include a broad array of alternative assets within those plans. Doing so can build a more diverse retirement portfolio as well as a hedge against stock market volatility, with nontraditional investments they already know and understand. Investors may already hold those assets outside of their existing retirement plans (such as investment property or precious metals); including them in a self-directed IRA enables them to grow their retirement savings with the same tax advantages as typical retirement plans which are far more limited in terms of the assets they allow.

As the term “self-direction” connotes, investors are self-directed, in that they are comfortable making all their own investment decisions, and conducting research about the investments as well as due diligence before sending investment instructions to our team. However, that doesn’t mean they won’t turn to their trusted advisors for guidance; therefore, understanding how self-directed retirement plans work, coupled with firsthand knowledge of a client’s retirement goals, investment preferences, and risk tolerance will enhance the unique relationship financial planners and others have with these investors.

Although financial advisors have been historically limited by only being able to share more traditional investments (usually stocks, bonds, mutual funds), non-publicly traded alternative assets—like those allowed in a self-directed IRA—enable advisors to work more responsively with clients’ investing goals and align certain investments with greater creativity and variety.

Guidance for financial advisors from Next Generation

Recognizing this, Next Generation has created a web page for financial advisors that provides an overview of self-directed IRAs and the many types of alternative assets these plans allow. You’ll find it, with good talking points to share with clients, under the Information & Education tab.

Independent fee-based financial advisors will be pleased to know that Next Generation’s advisory structure enables those professionals to direct their clients’ investments according to their existing advisory agreement and earn more fees on any assets Next Generation holds for their clients.

In the past, when their clients wanted to invest in alternatives that were not publicly traded, advisors in traditional financial institutions (bank, brokerage firm) had to refer clients and those funds elsewhere, potentially losing revenue from those referrals. When working with Next Generation, the advisors may bill for and get paid their fees directly from clients’ accounts.

If you are a financial professional or CPA who consults with your clients about investments and retirement plans, you may also want to open a self-directed retirement plan as you learn more about this strategy. If so, we invite you and your clients to register for a complimentary educational session to deepen your understanding of self-directed retirement plans and the alternative assets they allow.

 

As the Tax Deadline Approaches, Understand the Tax Implications of IRA Rollovers

What is an IRA rollover?

An IRA rollover is when someone takes a distribution from a retirement plan and transfers those funds into another account (such as an IRA). This rollover can be triggered when you leave a job and take the funds from an employer-sponsored retirement plan, or if you are a beneficiary who inherits a loved one’s IRA.

Taxable or non-taxable?

As the IRS explains, a distribution that is rolled over is not taxed until the account owner withdraws it from the new plan. This enables the individual to save that money for retirement as it grows tax deferred.

The distribution is taxable if you don’t roll over the payment (unless it is a qualified Roth distribution or the funds have already been taxed). You could also be subject to additional tax if you are not eligible for any of the exemptions to early withdrawals (there are now broader exemptions that came out of the SECURE Act 2.0).

Types of rollovers

These rollovers apply to self-directed retirement plans as well as their traditional counterparts. At Next Generation, we have clients who open a new self-directed IRA to accept a rollover and start investing those funds in alternative assets.

Sixty-day rollover: If a retirement plan distribution is paid directly to you, you must roll that distribution over into another plan or IRA within 60 days to avoid a taxable event. In the event of circumstances beyond your control, the IRS may waive the 60-day period.

Trustee-to-Trustee rollover: This is when the financial institution that holds your IRA makes the distribution payment directly from your IRA to another. No taxes are withheld from the transfer amount in this scenario.

Direct rollover: You can request that the plan administrator (of the original retirement plan) make the payment directly to another retirement plan or IRA. No taxes are withheld in this rollover. You must contact the plan administrator for instructions.

It is best to consult your tax advisor about the best way to handle a rollover for your financial circumstances.

Two rollover exclusions:

The IRA distribution cannot be a required minimum distribution (RMD) or a distribution of excess retirement plan contributions and related earnings. For workplace retirement plans, the same rules apply with additional exceptions. You can find the full list here.

Rollover limitations

In general, taxpayers are limited to one rollover from a) the same IRA or b) from the IRA to which the distribution was made within a 12-month period. This one-rollover-per-year rule applies to the aggregate of all of an individual’s IRAs (Traditional, Roth, SIMPLE, SEP). However, there are some exceptions to this one-per-year rule for rollovers:
• from a Traditional to Roth IRA (a Roth conversion)
• from a qualified retirement plan to an IRA (plan-to-IRA)
• between two qualified retirement plans (plan-to-plan)
• trustee-to-trustee transfers to another IRA

Tax withholding from retirement plan distributions

As noted above, there is no tax withholding when the rollover is a trustee-to-trustee transfer or a direct rollover between plans or IRAs. Taxes are only withheld when the IRA or plan distribution is paid to you directly.

• With an IRA, the direct distribution is subject to 10% withholding unless you choose to elect out of withholding or elect to have a different amount withheld.
• On retirement plan distributions paid directly to you, the tax withholding is 20%.

As always, we highly recommend you consult your trusted financial or tax advisor about these issues before executing a rollover, and to make sure you are properly reporting nontaxable and taxable income. If you have a question about making a rollover into a new self-directed IRA, you can always contact our team at NewAccounts@NextGenerationTrust.com or 888-857-8058. If you are ready to open a new self-directed IRA and fund it with a distribution rollover, you can “get rolling” with our starter kits.