An individual retirement account (IRA) allows individuals to direct pre-tax income, up to specific annual limits, toward investments that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status and other factors.

If transferring retirement funds from your company retirement plan, we will help you set up a Rollover IRA at one of our custodians and help you rollover your retirement plan by helping you contact your company’s plan administrator or your current account custodian.

Traditional and Rollover IRAs are held by custodians, such as our custodian, Charles Schwab, RBC, or Equity Institutional. Investors can place IRA funds into stocks, bonds, funds, and other financial assets deemed fit by the custodian. Non-traditional or specialty assets can also be held by your IRA. At SkyOak, we have a specialist who understand the IRS restrictions and can help you use your IRA assets to invest in non-traditional assets such as real estate, private mortgages, private loans, private company stock, oil and gas limited partnerships, precious metals, horses, and intellectual property through a Self-Directed IRA.  Only certain custodians allow such transactions. We at SkyOak, work with Equity Institutional to provide this service.

When the individual begins to receive distributions from a Traditional IRA, the income is treated as ordinary income and may be subjected to income tax. This differs from the Roth IRA, which can offer tax-free distributions. For people over the age of 50, higher annual contribution limits may apply. Distributions are required to come out of the account by the time the owner reaches age 70 ½.

At SkyOak we will create an income and cash flow analysis for you to determine how much to invest, how long to continue contributions, when to start taking distributions, and how mandatory distributions will affect you cash flow after age 70 ½.