A $9+ trillion Capital Opportunity
When you are in the process of raising capital for your next deal consider tapping into the IRA market. Currently there is over $9 trillion of capital sitting in IRAs and another $5+ trillion in company-sponsored 401(k) plans. Research reported by Bankrate.com shows that the largest IRAs are held by individuals between the ages of 40 and 70. Click here to read the entire article published by Bankrate®. Additionally, research conducted by the Investment Company Institute (ici.org) indicates that large IRAs are created through 401(k) rollovers. To review the ICI report, click here.
Investors may not know that IRA funds can be a source of capital for investing in your offering. Forge Trust can be of assistance in educating you and your investors on the rules, regulations and process regarding IRA investments in private offerings.
The Rules
Internal Revenue Code (Code) Section 408m describes those investments that are not permitted in an IRA — life insurance and collectibles. The Code also states that the IRA must have a custodian to administer the assets and provide an annual valuation statement to the account owner and the IRS.
The Regulations
Internal Revenue Code Section 4975 describes prohibited transactions with disqualified persons. In summary, an IRA account owner may have no personal benefit from the IRA investment.
The Process
The IRA account must be opened and funded prior to directing an investment. Custodian-to-custodian transfers can take several weeks to complete. All investment documentations including subscription agreements, purchase agreements or promissory notes must be in the name of Forge Trust as custodian FBO IRA.
Custom Integrated Custody Solutions to meet your specific needs
Forge Trust has the technology to provide various levels of integration between the investment platform and the custodian’s platform. Contact our Regional Director Travis Majors ([email protected] 408-398-4181) to discuss your needs in more detail.
Forge Trust has decades of experience in the custody and administration of alternative investments held in Traditional, Roth, SEP and Simple IRAs.
Why Forge Trust Company?
Custody Services for a Wide Variety of Alternative Assets
Educational Services for Professionals
Integrated Custody Solutions for Investment Issuers
Streamlined Account Opening
Efficient Transaction Processing
Competitive Service Fees
What types of Alternative Investments does Forge Trust custody?
The Smart Way to Raise Capital