IRA. It is yours to use as you wish. Tax Savings: If you qualify, you can enjoy all the tax benefits associated with real estate ownership. Like all IRAs, your SAFE HARBOR-Directed IRA will continue to grow tax deferred. Step Up in Tax Basis: The real estate you purchase through a SAFE HARBOR- Directed IRA can be passed to your heirs with a step up in basis. This means there will be tax savings on any appreciation accumulated. SHIRAs offer additional inheritance benefits as well. WHAT DOES IT TAKE TO SET UP A SAFE HARBOR-DIRECTED IRA? First, the foundation must be created. In the initial consultation, a Lasaii representa- tive will discuss the client’s financial goals and personal circumstances to determine if the SAFE HARBOR-Directed IRA is a good fit—and to discover if the client qualifies for the program. If so, consultants will help guide the client in structuring a customized IRA real estate plan, per- sonalized to the client’s needs and goals. Clients can then choose from a variety of IRA-approved custodians for their SHIRA. The custodians Lasaii offers for the SHIRA account provide vehicles that protect the principal from market downturns and al- low for growth at the same time. Next, the SHIRA account is opened by rolling over or transferring funds from existing quali- fied retirement plans to the SHIRA without any tax consequences. This process can take from two to six weeks, depending on how quickly IRA funds can be transferred. With the foundation in place, the next step is to coordinate and integrate the IRA, the leverage and the real estate. A lender of the client’s choice is engaged to establish a mortgage or prepare to refinance a current
mortgage if desired. A real estate checking account will be opened at the bank of the client’s choice. It will receive
monthly direct deposits from the SAFE HARBOR-Directed IRA earmarked to make the mortgage payments. The checking account and other back-office documents are necessary to remain com- pliant with IRA tracking requirements. With the SHIRA structure, the plan will also offer tax benefits associated with real estate ownership. Another two weeks should be plenty of time to complete this stage, especially if the loan application is underway prior to the transfer of funds.
Flexibility is one of the greatest benefits of the SAFE HARBOR-Directed IRA. If the client moves, sells or buys additional real estate, the SHIRA can be structured to support the mortgage the client wishes to service most. When unanticipated events occur—divorce, death, illness, etc.—adjustments can be made to the structure of the plan to accommodate the new situation. Depending on the choice of custodian, clients can reallocate their funds within the account annually. Real estate purchases can be made in the Unit- ed States or overseas and can be made by an individual or with partners. Lasaii has 23 years of experience in working with clients to coordinate IRA real estate plans. The company structures and maintains accounts in accordance with all IRA retirement plan rules and real estate legislation. Lasaii’s program combines a selection of 29 IRS real estate tax codes governing tax avoid- ance, qualified plans, and/or real estate
transactions, depending on a client’s individual plan. All updates to these tax codes, as well as any legislative chang- es, are carefully monitored. Lasaii also continually reviews the custodian’s IRA investment vehicles to ensure they meet all requirements mandated by IRS tax shelter inspectors. As stewards of their client’s SHIRA, Lasaii keeps all records in its database and in hard files for com- plete transparency. Lasaii’s OUTSIDE® structure has, for many years, benefited those with this valuable inside knowledge. Even 23 years after the first SAFE HARBOR-Directed IRA was formulated, it is still a relatively unknown technique. However, the word is spreading. Those who had a SHIRA plan in place before the collapse of Wall Street and the housing market in 2008 sing the praises of how this structure protected their assets. •
BY CLAIRE FENTON
Born and educated in England, Claire Fenton moved to America as a young woman. Her extensive background in sales, marketing and business ownership culminated in the formation of Stractgro, a consulting firm specializing in market expansion and new business development for real estate-related businesses providing strategy and action to create growth. She now works with CEO Alberto Flores-Uranga at Lasaii, a company dedicated solely to the formation of IRA real estate plans using the OUTSIDE® method through a proprietary structure called the SAFE HARBOR® Directed IRA™ (SHIRA™). 800-564-8625 | www.lasaii.com
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