 |
|
PENSCO Trust offers state-of-the-art custodian and administrative services for all types of self-directed IRAs through the combination of our proprietary technology and our experienced staff. Our team brings together decades of banking, securities, operations, finance, and management experience to help ensure that our clients receive exceptional service from knowledgeable staff. Because of our own reputation for integrity and specialized expertise we are able to work closely and productively with leaders and opinion-makers in the areas of tax, law, and finance that touch upon self-directed IRAs. Simply put, we are the experts that other experts turn to.
|
 |
As recognized leaders in our field, we take seriously our responsibility to help clients establish the proper structuring of transactions and assets in IRAs to maintain their tax-free or tax-deferred status and meet investment plan objectives. Our services begin with understanding your investment plan and objectives so that you can get the appropriate answers to the complex issues that sometimes arise. It is important to identify and analyze the possible immediate effects of a transaction, as well as the longer term ramifications of certain decisions. If we note there is a potential for a proposed transaction to contravene IRS rules, we will notify you promptly so that possible solutions can be explored. PENSCO Trust policy is not to accept any transaction that we believe violates existing rules.
We believe that our single-minded focus on doing what is right all of the time for our clients can help them achieve the financial security for their families. That is the reason we started this business and why we are as committed today as when we accepted our first account.
Through the PENSCO Trust Preferred Professionals program, we help link investors with highly qualified experts who assist clients in purchasing alternative investments, (e.g. real estate, private equity), through retirement accounts. Each professional in the program remains wholly independent of PENSCO Trust Company, as part of our effort to put our clients’ interests first. To find a PENSCO Preferred Professional please go to our professionals locator map.
PENSCO Trust permits clients
to invest in all IRS permitted investment types. Because the law governing
the types of investments permitted within IRAs is exclusive rather than inclusive,
there is a specific list of investments that are prohibited
(See IRS Publication 590 for
complete details). These are:
- Collectibles
(e.g. art, antiques, jewelry etc.)
- Life
insurance
- Coins
(other than U.S. gold coins)
- "party-in-interest"
transactions (These are transactions involving "disqualified"
parties such as ascendants, descendants, fiduciaries etc. See
Internal Revenue Code 4975 for details)
With these exclusions, the
range of permitted investments is quite broad, including mutual funds, stocks,
bonds, certificates of deposit, private placements, notes, mortgages, real estate,
partnerships etc.
Mutual Funds
PENSCO Trust clients are free to
choose any of the 8,000+ mutual funds available today. Clients simply contact
the fund(s) of their choice, obtain and complete the investment application(s)
and mail them to us. We will invest the necessary funds from your account and
forward the application to the selected fund.
Certificates of
Deposit
PENSCO Trust clients can
select any federal or state chartered bank or credit union and invest
in one or more certificates of deposits. Clients are expected to perform
their own due diligence on the banks they choose and be aware that deposits
under the FDIC are insured up to $100,000. PENSCO Trust provides, through its
depository banks, an automatic cash reserve account for immediate availability
of a client's liquid funds. PENSCO Trust pays interest quarterly on this account
at or above local (San Francisco) bank rates for similar liquid
accounts. Each account is FDIC insured up to $100,000. In addition,
PENSCO Trust chooses depository banks on the basis of their financial strength
and track record.
Stocks and Bonds
Any stock traded on any
of the public exchanges (e.g. New York, American, Nasdaq, Pacific,
Philadelphia, Chicago) is permitted by PENSCO, as well as any non-traded
or private stock. Procedures for private stock investments are slightly more
involved. PENSCO Trust can arrange to open an account with your broker of choice
(see the list of firms we have worked with).
Private Placements and
Limited Partnerships
Private placements are
simply limited private stock offerings that are generally conducted by start
up companies to raise funds for their businesses. Private Partnerships are
another way to raise funds for specific purposes. Rather than owning stock
in the corporation, limited partners own units of the total partnership which
can be independent from the company offering the partnership investment. PENSCO
does not offer, inform, direct, or evaluate these investments for clients,
except to ensure that the company offering such investments is registered as
a corporation. Clients are advised to perform their own due diligence for
these private investments and to seek the counsel of professional investment
advisers.
Real Estate, Mortgages
and Private Notes
Individuals can purchase
real estate, mortgages and private notes within their IRA accounts. Under
IRC 4975 (see Investment Opportunities above),
an individual cannot make such investments for their own use or that of a
direct lineal ascendant or descendant (e.g. father or daughter) or any other
disqualified individual or entity. However, such investments can be made to
disinterested third parties, or, in the case of real estate, when they are
treated strictly as investments and not otherwise used for personal gain
(such as occupying an office building owned by your IRA). Clients are advised
to seek the advice of a tax accountant or attorney before engaging in such
transactions to ensure that they do not violate rule 4975.
Other
There are many other types of
investments that can be made within IRAs. Some of these include unit
trusts and secured contracts, to name a few. If you have a question regarding the
acceptance of a specific investment you have in mind, please contact us. We'll
do our best to answer your questions. Remember, however, we cannot advise you
on the type or specific investment.
If you have a question regarding your IRA or a specific investment,
please call us. We'll be glad to help you.
If you would like us to
send you more information about PENSCO Trust or IRAs, please fill in our
email form and send it to us. We will respond
to your request at our earliest opportunity.
|
