mountain west ira

Roth IRA

How Do I Open a Roth Self-Directed IRA?

We have step-by-step directions HERE.
You may also view our Process Diagram HERE.
If you have any questions, please contact our office HERE.

Pay taxes now on the seed and your investments grow tax-free in a self-directed Roth IRA

One of the best ways to save for retirement is with a Mountain West self-directed Roth individual retirement account. Why? Because the growth and income on your investments are free from federal income tax as long as certain conditions are met.

If your current Roth IRA doesn’t allow for self-direction, you may transfer the funds to a Mountain West self-directed Roth IRA so that you may choose alternative investments you know best.

Currently, you may jump start a tax-free IRA by converting your traditional IRA to a self-directed Roth IRA. While this is a taxable event, your investments will grow tax free. There is no longer any income limitation to convert a traditional IRA into a Roth IRA.

Other advantages of a Roth IRA are contributions may be made as long as you earn income even after you are 70½ years old and there are no required distributions at any time. In most cases, a Roth IRA Holder may withdraw the principal amounts invested without any tax liability.

How to determine if a Mountain West IRA Self-Directed Roth IRA is right for you

Do you want tax-free earnings and no taxation on withdrawals?

Are you already saving for retirement with an employer sponsored plan?

Do you want to invest a retirement plan but may need to access your savings?

Do you expect your tax rate during retirement to be higher than your current tax rate?

Do you want to control what types of investments you put in your IRA?

Are you eligible to contribute to a Roth IRA?

Roth IRA Contribution Limits

Roth IRA contribution limits are established annually by the IRS and may change from year to year.
‍View Current Contribution Limits ‍HERE

How Do I Open a Self-Directed Roth IRA?

Step-by-Step Instructions: Learn how to open and fund your account  HERE.
Process Diagram: View our step-by-step account opening and asset purchase process HERE.

What Are the Benefits & Features of a Self-Directed Roth IRA?

A self-directed Roth IRA offers the same general tax treatment as a Roth IRA while allowing account owners to hold a broader range of eligible assets. Contributions are made with after-tax dollars, and qualified distributions are generally tax-free.

  • Potential Tax-Free Growth: Earnings may be withdrawn tax-free when applicable IRS requirements for qualified distributions are met.
  • ‍Broader Asset Choices: A self-directed Roth IRA may hold eligible alternative assets, including real estate, precious metals, private companies, and promissory notes.
  • ‍Contribution Flexibility: Eligible individuals may contribute at any age, subject to IRS income limits, compensation requirements, and annual contribution limits.
  • Required Minimum Distributions: Roth IRA owners are not required to take RMDs during their lifetime. Inherited Roth IRAs are subject to separate distribution rules.
  • Account Owner Control: You select the assets held in your IRA and direct authorized transactions. Mountain West IRA handles the administrative and recordkeeping responsibilities.

Roth conversions and nonqualified distributions may have tax consequences. Consult a qualified tax professional regarding your individual circumstances.

What Should I Consider Before Opening a Self-Directed Roth IRA?

Before opening a self-directed Roth IRA, it's important to understand how the account works, the applicable IRS requirements, and your responsibilities as an account owner.
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Consider the following:

  • Eligibility: Do you meet the IRS income and compensation requirements for making Roth IRA contributions?
  • Funding: Are you planning to fund your account through contributions, an eligible transfer, rollover, or Roth conversion?
  • Access to Funds: Do you understand the rules for withdrawing contributions and earnings, including when taxes or penalties may apply?
  • Asset Selection: Are you comfortable researching, selecting, and managing the assets held in your IRA?
  • IRS Requirements: Are you familiar with prohibited transactions and other rules that apply to self-directed IRAs?

Mountain West IRA provides administrative and recordkeeping services and does not offer financial, tax, or legal advice. Consult a qualified professional to determine whether a Roth IRA is appropriate for your circumstances.