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Frequently
Asked
Questions
Where is FIRST
SAVINGS BANK located?
We are
approximately 5 miles east of the famous Strip in Las Vegas, Nevada.
What are the
contribution limits to a self-directed IRA?
Limits vary with
the different types of self-directed IRA's. Our link to the 590 Publication can help you
determine what the limits are, or a tax advisor or CPA can also help with
the determination for you as an individual.
What are the
types of investments I can make in my self-directed IRA?
FIRST SAVINGS
BANK limits the types of investments you make to Deeds of Trust, Mortgages,
LLC’s and Partnerships that invest in Deeds of Trust and Mortgages.
Would FIRST
SAVINGS BANK recommend any investments or give investment advice?
FIRST SAVINGS
BANK is a self-directed IRA custodian; as a passive custodian we do not offer investment
advice nor do we recommend any investments or an investment product. We
will not use any type of solicitations or pressure you to invest in certain
products. We feel that you are the best decision maker for your assets, as
well as your future.
What do you do
with the cash that is not invested in my self-directed IRA?
FIRST SAVINGS
BANK pays you a competitive rate of interest on those funds. They are held
within your self-directed IRA as a Money Market Asset. You can always look
at your un-invested cash and investments via our Private Banking Internet
Site. Your Money Market Asset is FDIC Insured and regulated by those
rules. All other investments are not FDIC insured, may lose value, and
have no bank guarantee.
I have an
investment that needs to be made immediately, can you do that?
If your account
is already established and you have the available cash to invest in your
Money Market Asset, yes we can. We will ask you for your authorization to
invest and once verified we will direct the funds as you request, usually on
the same business day.
If your account
is yet to be opened, we will direct your funds as you request when we
receive funds into your self-directed IRA.
What is a
prohibited transaction?
Generally, a
prohibited transaction is any improper use of your self-directed IRA by you, your
beneficiary or any disqualified person. A disqualified person would include
your fiduciary and members of your family (spouse, ancestor, lineal
descendant, and any spouse of a lineal descendant or a transaction between
you and your beneficiary).
Can my
self-directed IRA
purchase real estate that I now own?
No. This is a
prohibited transaction. You would be the disqualified person.
Can I purchase
an interest in a Subchapter S Corporation with my self-directed IRA?
No. Self-Directed IRAs are not
to be investors in a Sub Chapter S Corp.
Can I purchase
real estate that my corporation, partnership or LLC owns?
No. This would
be a prohibited transaction .
Where can I
find the explanation of prohibited transactions?
You can go to our
home page ‘links’ to view the 590 Publication from the IRS.
Take me there.
When I
purchase real estate with my self-directed IRA how does the title read?
FIRST SAVINGS
BANK for benefit of (FBO) Your Name, IRA.
What about
expenses and income on my real estate investment?
When your
self-directed IRA funds an investment then all income must come back into the
self-directed IRA. You must have cash available in your Money Market Asset to cover any
expenses associated with your real estate purchase if the self-directed IRA is to pay
those expenses.
What if I sell
the property or investment, where do the funds go?
The self-directed IRA would
receive all proceeds from the sale. The proceeds would come back FIRST
SAVINGS BANK FBO your name. If you were to take benefit of the funds
from the sale you would lose the tax shelter of your self-directed IRA.
How do I open
a self-directed IRA?
Click here and fill out the information.
We will send you a packet in the mail about our IRA services and account
opening procedures.
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