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Self Directed IRA Program

Welcome to the GSCSC, Inc. website and blog. In this article, we will be discussing our Self Directed IRA Program. Now more than ever, small, medium and large businesses need to think about Asset Protection strategies. With more and more companies sueing other companies, and many trying to go after directors, officers, and board members of corporations, it is more important than ever, to think about how to protect yourself with this changing economic system that we all have to live with. With land trusts, living trusts, and Self Directed IRA programs, and privacy protection, programs you can protect yourself personally, and at the same time, protect your business as well. Here is our Self Directed IRA program.

Self-Directed IRA Program

How it Works:

Certain retirement programs accumulate investment income without paying taxes on that investment income. These programs include Roth IRAs, 401(k)s,401(b)s and SEP IRAs, among others.  Step OneWe establish a Self-Directed (not a sponsored) retirement program for you. We normally use a Self Directed IRA for this purpose. You are the beneficiary of your self directed Roth IRA. You determine what investments in which you wish the self directed ROTH IRA to invest in. You decide that you will have your self directed Roth IRA invest in a Limited Liability Company (LLC) or Limited Partnership (LP) with a corporation as the general partner depending on the state in which you live. In California, many feel the limited partnership plus a corporation provides stronger asset protection and privacy protection and increased tax benefits over the LLC. 

Step TwoThe Limited Liability Company (LLC) or Limited Partnership (LP) is now owned all or in part by the self directed ROTH IRA. You as an individual entity, legally are separate from both the Limited Liability Company and the self directed ROTH IRA. The owner of the LLC is the Self directed ROTH IRA, a retirement Program.  IMPLICATIONS:  Legal Liability  Should the LLC be sued, the owner of the LLC, the retirement program, is only sued if separately named in the lawsuit. The Department of Labor has made it very difficult to sue retirement programs.  Tax Liability  While the LLC files an informational tax return, the LLC pays no tax. The tax is paid by the owner of the LLC. The owner of your LLC is a Retirement program. Certain retirement programs like the Self Directed Roth IRA pay no income tax on the investment returns of their investments. Therefore your retirement program pays no income tax on the investment return (the “profits”) of the LLC.

Your personal tax liability is limited to the “salary” paid to you by the LLC or LP. You, can determine both the amount of the “salary” and the timing of the payment.

If you would like more information on setting up a Self Directed Roth IRA retirement program, please contact one of our resellers, or call us direct at: (775) 297-7250. One of our Self Directed IRA Program Specialists will be glad to help you.

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