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Next Generation Trust Services Announces Filing Extension on Fair Market Value Form for its Clients with Self-Directed IRAs

Next Generation Trust Services Announces Filing Extension on Fair Market Value Form for its Clients with Self-Directed IRAs

Form for Declaring Fair Market Value of Self-Directed Retirement Accounts May be Submitted to Third-Party Administrator up Until March 31, 2015. Next Generation Trust Services, a third-party administrator of self-directed retirement plans, is alerting its clients that due to new in-office procedures, the firm is able to push the deadline for clients to return the Fair Market Value Form to March 31, 2015 if necessary.

Next Generation Trust Services, a third-party administrator of self-directed retirement plans, is alerting its clients that due to new in-office procedures, the firm is able to push the deadline for clients to return the Fair Market Value Form to March 31, 2015 if necessary. The form is used by holders of individual retirement arrangements (IRAs) to declare the accounts’ fair market value (FMV)t Generation uses the information provided by its clients to prepare the IRS required reporting of 5498s. The IRS requires all IRA administrators to report the value of each IRA they administer using Form 5498 by May 31st each year.

“We recognize that not every client will be able to fully calculate their IRAs’ fair market value by our previous December 31 deadline due to certain investments in their retirement funds,” said Matt Zidow, operations manager of Next Generation Trust Services. “We will now be able to update year-end FMV figures after March 31 due to changes in our trust accounting software.”

With self-direction, individuals may invest in a broad range of nontraditional assets including real estate, commodities, private paper, loans, precious metals and much more. Account holders make all their own investment decisions; Next Generation manages all the paperwork and filing for its clients’ accounts, provides transaction support, and ensures that clients are investing within IRS guidelines.

“The growth in self-directed retirement plans has caught the attention of the IRS,” said Raskulinecz. “The changes to Form 5498 have been made in order to track non-publicly traded alternative assets more closely. She added that the asset valuation in self-directed IRAs must be performed by a third-party professional. Next Generation clients are encouraged to contact the office staff for specifics on their asset type.

For more information about self-direction as a retirement strategy or the nontraditional investments allowed through self-direction, visit https://NextGenerationTrust.com or contact Next Generation at Info(at)NextGenerationTrust(dot)com or (888) 857-8058.

About Next Generation Trust Services

Next Generation Trust Services (NGTS), headquartered in Roseland, New Jersey, is a professional third-party administrator of self-directed retirement plans. NGTS provides education, administrative support, and account maintenance to individuals interested in self-directing their retirement portfolios with a wide variety of investments that are not typically found in an IRA, such as real estate, precious metals, notes and mortgages, private placements, accounts receivables, limited partnerships, hedge funds, and much more. Next Generation Trust Services serves clients globally via its website, https://www.NextGenerationTrust.com. For more information on self-directing a retirement plan, call 973-533-1880, 888-857-8058 (toll free), or e-mail Info(at)NextGenerationTrust(dot)com.

Don’t get stuck saying, “I need how much to retire?”

Let’s face it: there are a lot of things competing for your hard-earned money. The mortgage, taxes, utilities, your kids’ education, vacations, car payments, health insurance and the list goes on. So where does your retirement account fit in?

The old saying “Pay yourself first” has a lot of merit. Not that you should avoid paying your bills … but paying yourself by socking away more money in your retirement account every month will go towards closing any retirement savings gap you may have.

In today’s world, it costs a lot to maintain a comfortable lifestyle during retirement, especially since Americans are living (much) longer than prior generations did. You can use a retirement calculator to find out how much you will need to have saved up by retirement age (which for many people at this point will be age 67). The calculator from the Social Security Administration gives you a very clear picture of where you’re headed and can help you avoid any nasty surprises.

Enter your current age and age of expected retirement, how much you have saved now in your retirement account and how much you contribute, and other factors. The calculator will estimate what you will have in the bank and what you’ll need to carry you through those golden years; it’s easy to see how well you’re doing so far, and what kind of shortfall you can expect.

Avoid surprise—be focused and proactive

With focus and savings diligence you can not only stay on track to meet your estimated retirement money needs, but you might even surpass that amount and breathe a little easier. One way to build up a more robust nest egg is to be sure to contribute every month to your retirement account and depending on your calculator results, add a bit more than you’ve been contributing and stay the course.

Take control of your retirement

Another great way to boost your retirement savings is to self-direct your retirement account and grow those savings through assets you know and understand. A self-directed Traditional or Roth IRA can include many nontraditional investments that may grow in value more rapidly and more aggressively—with less of those devastating stock market drops. Business owners can also self-direct a SIMPLE IRA (for employers and their employees), a SEP IRA (for the self-employed or for business owners and their employees) or a Health Savings Account (HSA). You can read more about each type of retirement plan here.

Go to the retirement calculator and plug in your figures to see where you stand today vs. your retirement savings goal. Then give Next Generation Trust Services a call to discuss how you can avert any nasty retirement plan surprises by opening a self-directed retirement plan. You’ll make all your own investment decisions (often in consultation with your trusted advisors) and our professionals will take care of executing the transactions, filing all the paperwork and managing all the reporting for you. You can reach our helpful staff at (888) 857-8058 or Info@NextGenerationTrust.com.

 

Click here to learn more about self directed IRAs.

Next Generation Trust Services Selects Innovest as its Trust Accounting Provider, Citing Superior Accounting Software, CRM Integration

Next Generation Trust Services Selects Innovest as its Trust Accounting Provider Administrator of Self-Directed Retirement Plans Chooses Platform That Supports over One Million Self-Directed IRAs, Features Will Help Next Generation Enhance its Customer Service.

Next Generation Trust Services, an administrator of self-directed retirement plans, has chosen Innovest as its trust accounting provider. Next Generation will use the InnoTrust CRM solutions as tools to better serve its clients. The Innotrust CRM is powered by MS Dynamics.

“Using Innovest’s solutions enable us to offer our clients mobile access to their accounts and gives us the most up-to-date accounting and customer relationship management software,” said Jaime Raskulinecz, founder and CEO of Next Generation Trust Services. The solutions are fully integrated with Next Generation’s other programs and provide excellent sales, client service, and productivity tools. Innovest supports over one million self-directed IRAs nationwide; in addition to administrators of self-directed retirement accounts, the platform is implemented by banks, trust companies, investment advisors and other financial institutions.

“Our in-office operations will be even more efficient, and our statement and fulfillment options will be improved,” noted Raskulinecz. “Innovest offered superior features that will help us streamline our customer relationship management as we continue to grow our business.” Next Generation Trust Services has experienced a high rate of growth in recent years—in spite of the economic downturn—and now holds over half a billion dollars in assets for its clients who self-direct their retirement plans. Raskulinecz attributes much of that growth to her firm’s commitment to deliver superior customer service at all times.

In self-direction, account holders make all their own investment decisions, and may invest in a broad array of nontraditional assets that are not allowed in typical retirement plans. These include real estate, precious metals, commodities, private placements, mortgages and many more. For more information about self-direction as a retirement wealth-building strategy, contact Next Generation Trust Services at Info(at)NextGenerationTrust(dot)com or (888) 857-8058, or visit https://www.nextgenerationtrust.com.

About Next Generation Trust Services

Next Generation Trust Services (NGTS), headquartered in Roseland, New Jersey, is a professional third-party administrator of self-directed retirement plans. NGTS provides education, administrative support, and account maintenance to individuals interested in self-directing their retirement portfolios with a wide variety of investments that are not typically found in an IRA, such as real estate, precious metals, notes and mortgages, private placements, accounts receivables, limited partnerships, hedge funds, and much more. Next Generation Trust Services serves clients globally via its website, https://www.NextGenerationTrust.com. For more information on self-directing a retirement plan, call 973-533-1880, 888-857-8058, or e-mail Info(at)NextGenerationTrust(dot)com.

About Innovest

Innovest is a leading provider of financial technology solutions delivered to forward-thinking trust, wealth management, and retirement professionals. Innovest’s solutions empower its clients to acquire new customers, invest assets effectively, manage trust and investment portfolios efficiently, and flexibly report results to customers. Innovest has over $425 billion in assets under administration on its trust and wealth management platform, processes more than 4 million payments annually and provides fulfillment services for more than 10 million documents including checks, advices, and tax forms each year. Innovest’s wholly owned subsidiary, FinTech Securities, executes over 69 million equity shares annually. For more information about Innovest, visit https://www.innovestsystems.com.

Women and Retirement Savings – Women Have to Work Harder

A report on CNN* recently showed that although women in general put away a larger percentage of their paychecks into a savings plan, they still lag behind men when it comes to the final savings amount. The report cited an analysis by Vanguard of more than a million savers with 401(k) plans which revealed that women are 10 percent more likely to enroll in their workplace savings plan and save a bigger chunk of their paychecks than their male counterparts.

However, in spite of their diligence about saving for retirement, those female savers have an average balance in their retirement plans that are far less than the men. Women’s average retirement savings are $78,000 as opposed to the male average balance of $121,000.

The Gender Wage Gap

Jean Young, a Vanguard senior research analyst, points to the gender wage gap (yes, it is still an issue in the workplace). In general, the men surveyed earned an average of 40 percent more than women. The Vanguard study showed the big disparity in average retirement savings showed up among the highest earners, where more male workers are bringing in the higher incomes.

In addition to the wage gap, other factors in women’s retirement savings shortfall include the fact that on average, women work 12 years less than men do over the course of their careers (Source: AARP Public Policy Institute). This is usually due to taking time off to raise children or care for sick spouses/partners or aging parents.

All that being said, a 401(k) might not be the only retirement plan someone has in place but the study does bring to light very important issues for women—and for all workers:
It’s never too early to start saving for retirement, and it’s crucial to save diligently throughout the course of one’s working life.

Self Direct

One way to build more retirement income is to self-direct your retirement plan and invest in a broader range of investments; by including nontraditional assets in your retirement plan, you could develop a more lucrative retirement portfolio. You may self-direct a Traditional or Roth IRA; if you are a business owner you can open a SIMPLE IRA for you and offer this plan to your employees; and if you are self-employed, you can open a self-directed SEP IRA, solo (k) or individual (k) plan. You may also self-direct a health savings account (HSA).

Opening a self-directed retirement account can’t close that gender wage gap . . . but it can take you further along the road to a more comfortable retirement.

Contact the self-direction specialists at Next Generation Trust Services for more information at Info@NextGenerationTrust.com or (888) 857-8058; or go to https://www.nextgenerationtrust.com/ira-education/ for more information about the various types of self-directed plans and how to get started.

*https://money.cnn.com/2014/10/12/retirement/retirement-savings-wage-gap/

A Self-Directed SEP IRA—A Great Way for Business Owners and Their Employees to Save for Retirement

SEP – Simplified Employee Pension

SEP stands for simplified employee pension; a SEP IRA is a truly simplified way for employers to make contributions towards their employees’ retirement. Self-employed individuals may open a SEP IRA to contribute to their retirement savings as well. If an employer decides to establish these retirement plans for workers, a SEP IRA (which is a Traditional IRA) must be set up for each employee and all employees must receive the same benefits (contribution percentage) under the plan. IRS Publication 560 has details about this or go to https://www.irs.gov/Retirement-Plans/Choosing-a-Retirement-Plan:-SEP.

Some simple but strictly held conditions of eligibility apply for SEP IRAs. Participating employees must be at least 21 years old, must have worked for the employer for a least three of the previous five years, and must have received at least $550 in compensation for the tax year (this will go up to $600 in 2015). Once those criteria are met, a formal written SEP agreement is executed and eligible employees are given relevant information about the plan. The employees control their accounts and the employer sends the contributions to the financial institution where the account is maintained. You can read more about setting up a SEP IRA here.

SEP IRA contributions

SEP IRA contributions are treated as part of a profit-sharing plan and employers may contribute up to 25 percent of the employee’s wages to his/her account (up to $52,000 in 2014 and $53,000 in 2015); the contribution amounts are flexible so they can change as seasonal cash flow or sales cycles fluctuate. Contribution limits for the self-employed are different and are based on net profit, so it’s a good idea to consult your accountant about this.

Contributions are deductible and will lower a taxpayer’s income tax liability in that contribution year. The funds are taxed at ordinary income tax rates when qualified withdrawals are taken after age 59 1/2 (as for Traditional IRAs).

Investing for Retirement in a SEP IRA

Funds in a SEP IRA may be invested in the same way as they are in the case of a Traditional or Roth IRA. In the case of a self-directed SEP IRA, those tax-advantaged funds could be growing more via the alternative assets allowed in self-directed retirement plans.

As with all self-directed retirement accounts, there are many more investment options available to owners of a SEP IRA. Many individuals already know and understand various alternative assets such as real estate, commodities, precious metals, and private placements—why not include them in a self-directed SEP IRA and build a more diverse retirement portfolio? Whether it’s the business owner/self-employed individual seeking to make alternative investments or savvy employees who might already be investing in these assets outside of their existing IRAs, there are more opportunities to build up retirement savings through self-direction.

To learn more or to get started with a SEP IRA for you and/or your employees, contact our self-directed IRA specialists at Next Generation Trust Services: (888) 857-8058 or Info@NextGenerationTrust.com.

 

Read more about SEP IRAs here.

SIMPLE IRAs Can be Self-Directed

What is a SIMPLE IRA?

SIMPLE stands for savings incentive match plan for employees. It allows employers and employees to make contributions to a Traditional IRA set up for those employees. It’s applicable to self-employed individuals as well (certain limits apply). For employers who do not yet sponsor a retirement savings plan at their workplace, a SIMPLE IRA is a great way to start. These plans are for companies with fewer than 100 employees.

As with SEP IRAs (another type of employer-sponsored retirement plan), there must be a SIMPLE IRA set up for each eligible employee. A SIMPLE IRA is relatively easy to set up and run, and employees may contribute to their accounts through payroll deductions, thereby building up retirement savings by deferring a part of their salaries. The contributions are tax-deferred.

Employers must also contribute to each eligible employee’s SIMPLE IRA in one of two ways: match participants’ contributions or contribute a fixed percentage of all eligible employees’ pay. Each employee owns and controls his/her SIMPLE IRA. You can read more about these retirement plans in the IRS website.

Self-Directed SIMPLE IRAs

For those employees and employers who know their way around alternative investments or who wish to make their own investment decisions, a self-directed SIMPLE IRA can help them control their futures. With a self-directed SIMPLE IRA, the account holder may choose to invest not only in stocks, bonds and mutual funds but in the broad array of alternative assets allowed through self-direction—real estate, precious metals, commodities, unsecured loans, and much more.

The maximum contribution allowed to SIMPLE IRAs is $12,000 in 2014 (this goes up to $12,500 in 2015); for employees over age 50, there is a catch-up contribution of an additional $2500 currently allowed (with an increase to $3,000 in 2015). As we head into the final weeks of the year, there’s still time to make those contributions and meet the annual limit (and build up those retirement savings).

If you’d like to open a self-directed SIMPLE IRA for you and your employees, Next Generation Trust Services can help. Our transaction specialists can answer your questions about the nontraditional investments allowed through self-direction and can guide you along the way.

 

Click here to find out more about SIMPLE IRAs
Click here to find out more about self-directed IRAs.
Contact us at (888) 857-8058 or Info@NextGenerationTrust.com to get started today.

Retirement plan increases in 2015

Will You Park More Money in Your 401(k) in 2015?

Some sources are saying that there will be cost of living adjustments coming that will increase retirement plan benefit limits in 2015.  These limits are set by the IRS, based on the consumer price index-urban (CPI-U), a measure of the inflation rate from the Bureau of Labor Statistics; the numbers for July, August and September will be released around October 22.

Without getting too balled up in lots of figures, here’s the bottom line regarding the possible increases in retirement plan benefit limits:

 

You can read the original post that got this conversation going and get more statistics at https://xerox.bz/1nc9vuE.

We’ll keep you posted on what happens with these limits; suffice to say, any opportunity to boost your retirement savings is a good opportunity. Another opportunity to boost retirement wealth is through a self-directed retirement plan; self-direction allows investors to include a wide range of alternative assets in their self-directed Traditional or Roth IRA, self-directed SEP IRA or self-directed SIMPLE IRA for themselves and their employees. Looking to diversify your retirement portfolio?

Contact Next Generation Trust Services at Info@NextGenerationTrust.com or call (888) 857-8058 to get started on controlling your future, today.

 

For More Info On Self Directed IRAs Click Here

Next Generation Trust Services Alerts Investors to Possible SEC Changes in Definition of “Accredited Investor” and Investing Limitations

Administrator of Self-Directed Retirement Accounts Points to Recent Advisory Committee Proposals that Would Change Criteria for Who Qualifies as Accredited Investor; May Alter Who May Use Self-Directed Retirement Account for Equity Funding in Startup Companies.

Next Generation Trust Services is alerting its clients about possible SEC changes regarding who qualifies as an accredited investor. The administrator of self-directed retirement plans has among its clients, investors who use the funds in their self-directed IRAs to invest in equity funding opportunities in early-stage companies. The SEC is now talking about making changes that could alter the crowdfunding and angel investing landscape.

Currently, the SEC requires that accredited investors have an individual income of at least $200,000 for the past two years ($300,000 household income) and a net worth of $1 million, excluding primary residence. There is no criterion set for an investor’s financial sophistication.

The SEC’s Investor Advisory Committee has approved several recommendations to the accredited investor definition; no changes or official rulings have taken place yet, but startup companies have concerns about their investor pools possibly shrinking. Among the criteria discussed by the Investor Advisory Committee was financial sophistication of the investor based on professional experience, education or credentials; other recommendations concern investors’ financial thresholds and alternative approaches to setting those thresholds.

“The SEC should take into account that many investors might not quite meet the financial benchmarks of an accredited investor, but may have tremendous financial knowledge and investment experience,” noted Jaime Raskulinecz, founder and CEO of Next Generation. She explained that some of her clients include equity funding in their self-directed retirement portfolios because they meet the SEC’s financial criteria. Angel investing, private placements and venture capital investments are among the many alternative assets allowed in self-directed retirement plans.

In self-direction, account holders make all their own investment decisions, usually based on investments they already know and understand, through which they may build more diverse and potentially more lucrative retirement portfolios. In addition to equity funding opportunities, self-directed retirement accounts may include many other nontraditional investments, such as real estate, commodities, hedge funds, unsecured loans and precious metals. As the third-party administrator, Next Generation provides comprehensive account administration, executes the transaction, and offers education and guidance to investors on the various options and benefits of self-direction as a retirement strategy.

“We hope the SEC will choose to open more doors to more investors, and help startup companies to attract the capital they need,” said Raskulinecz. “Many smart investors may fall slightly short of the financial minimums but have the business acumen or investing know-how to make smart investment decisions they are comfortable with, and that will help grow our economy in the long run.”

The discussion around accredited investors concerns the JOBS Act and the phasing in of its provisions; the final piece was meant to make it easier for people to invest in early stage companies. “When Title III of the JOBS Act is fully implemented, companies will be able to offer stock in exchange for capital to smaller investors,” said Raskulinecz. “Until that day arrives, no one knows what the final regulations will really be; we will continue to keep investors updated on our blog.”

To learn more about self-directed retirement plans, visit https://NextGenerationTrust.com or contact Next Generation Trust Services at (888) 857-8058 or Info(at)NextGenerationTrust(dot)com. For more information about the possible SEC changes

About Next Generation Trust Services

Next Generation Trust Services (NGTS), headquartered in Roseland, New Jersey, is a professional third-party administrator of self-directed retirement plans. NGTS provides education, administrative support, and account maintenance to individuals interested in self-directing their retirement portfolios with a wide variety of investments that are not typically found in an IRA, such as real estate, precious metals, notes and mortgages, private placements, accounts receivables, limited partnerships, hedge funds, and much more. Next Generation Trust Services serves clients globally via its website, https://www.NextGenerationTrust.com. For more information on self-directing a retirement plan, call 973-533-1880, 888-857-8058, or e-mail Info(at)NextGenerationTrust(dot)com

 

 

What’s the Fair Market Value of Your Self-Directed IRA?

Every year, IRA account administrators are required to file Form 5498 on behalf of its clients, which reports the fair market value of the IRA. With the growing popularity of self-directed retirement plans, the IRS has put these plans more squarely on its radar, and added a box to Form 5498 this year meant for self-directed accounts or “hard to value assets.” This appears to be a signal that the government is interested in tracking non-publicly traded alternative assets (which are invested within these accounts) more closely. This is entirely new to the form and to self-directed investors.

Declare the Fair Market Value of Your Self-Directed IRA

One purpose of Form 5498 is to declare fair market value of an IRA as of December 31st of every year to your IRA custodian. Custodians or administrators in turn have until June 1st of the following year to file the appropriate IRS reports (using Form 5498) on behalf of all its clients’ retirement plans; Participants/clients must also get statements that reflect fair market value of the assets in their retirement plans (custodians/administrators must also provide the report to their clients).

Hire a Third Party Professional to Value Your IRA

In order to correctly report fair market value of the assets within the self-directed account, it is imperative that investors have each separate nontraditional asset professionally valued by a third-party professional; this may be an accountant or CPA, an appraiser (depending on the asset) or a valuator. This valuation must be done by the end of the calendar year (December 31st) so that account administrators can meet the IRS deadlines for reporting. Given the changes to Form 5498, it is very likely that the IRS will become more diligent about requiring these valuations.

Report the Fair Market Value by December 30th

At Next Generation Trust Services, we will be asking clients to report the fair market value of their assets to us no later than December 30th and we will send out requests for this information during the month of October; this will give us ample time to prepare the reports for the IRS. We recommend that anyone who has a self-directed retirement plan consult a tax professional about getting a fair market valuation for their nontraditional assets as soon as possible so their Form 5498 can be filed correctly and on time by their administrator.

Next Generation Trust Can Answer Your Questions About Valuation Requirements of Your Self-Directed IRA

If you have any questions regarding the changes to Form 5498 and the valuation requirements concerning the nontraditional investments in your self-directed IRA, our professionals are always available with the answers. Contact our team at Info@NextGenerationTrust.com or (888) 857-8058. You can read more about Form 5498 and filing rules on the IRS website.