CFO of Self-Directed Retirement Account Administrator is Available to File Form 990-T for Clients
Published on June 24, 2014
Self-directed retirement plans allow individuals to make real estate investments through an IRA. However, many investors may be unaware of an important IRS tax filing related to real estate properties within these plans. Next Generation Trust Services, an administrator of self-directed IRAs, is alerting investors that they must pay unrelated business income tax (UBIT) or unrelated debt-financed income tax (UDFI) if a mortgaged property in their self-directed IRA generates income or is sold. The form to use in these cases is IRS Form 990-T.
Equally important for self-directed investors to know is that they must obtain a new tax identification number from the Internal Revenue Service for their self-directed retirement account in order to report and pay the taxes on Form 990-T. Each account must have a unique tax ID that is separate and apart from the account administrator’s custodial tax ID number.
To obtain a new tax identification number for a self-directed retirement account, account holders must file Form SS-4, Application for Employer Identification Number, which can be found at https://www.irs.gov/pub/irs-pdf/fss4.pdf. Instructions for Form SS-4 are available at https://www.irs.gov/pub/irs-pdf/iss4.pdf
“We’re reminding our clients and the self-directed investing public about obtaining that distinct tax ID number for each retirement account, and that they file Form 990-T on a timely basis,” noted Jaime Raskulinecz, CEO of Next Generation Trust Services. “As a convenience to our clients, our chief financial officer, who is also a certified public accountant, will file Form 990-T on their IRA’s behalf but we must have that request in writing. Please contact one of our representatives for more information on this new service and the fees associated with it.”
Next Generation Trust Services provides full account administration and transaction support for self-directed retirement plans, which allow for a wider array of investments; real estate is among the most popular alternative asset held within self-directed retirement accounts. With self-direction the account holder makes all his or her own investments decisions; Next Generation handles all the paperwork, executes the transactions based on clients’ instructions, and guides investors regarding IRS regulations related to this retirement wealth-building strategy.
For more information about self-direction or how to make real estate investments within self-directed IRAs, contact Next Generation Trust Services at Info(at)NextGeneration(dot)com or (888) 857-8058, or visit https://www.nextgenerationtrust.com/real-estate-ira/.
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.Back to Blog