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ASHEVILLE, NC / ACCESSWIRE / April 9, 2021 / What are the potential pitfalls that investors should avoid when funding a Self-Directed IRA? According to a recent post at American IRA, a Self-Directed IRA administration firm based in Asheville, NC, pitfalls include not putting enough research into understanding the various funding methods, or not taking action quickly enough to make sure that a rollover is complete, which can potentially create a taxable event with the IRS.
In the post, American IRA highlighted the different funding methods available for investors. For example, some investors simply choose to open an account and begin funding via direct contribution. This funding method is the most straight-forward and comes with straight-forward rules as it applies to contribution limits. For example, if a Self-Directed IRA investor opens a Self-Directed Roth IRA, they would be subject to the contribution limits of their age. But this arrangement also makes it easy to open an account and begin investing.