About Futures & Options IRA Accounts
Did you know your IRA accounts are not limited to equity investments such as stocks, ETFs, and funds. Self-directed IRA accounts are among some of the most popular ways to trade Alternative Investments such as options and futures (including commodities and forex futures).
At Back Bay Futures we've had the experience of working with clients, consulting to setup their IRA, opening IRA accounts, and or transferring existing IRAs to invest in managed futures, managed fx or for experienced investors to open and trade self-directed or broker assisted futures or forex accounts.
Are you looking to rollover a self-directed IRA, or trade your trust account in the market? The first question you must ask yourself is, are you willing to subject your IRA to the risk of futures and forex markets? If you are comfortable with accepting that risk then you need to find an IRA custodian to house your self-direct IRA that allows for alternative investments.
Why Use a Self-Directed IRA?
- Invest your funds the way you want
- Low minimum initial deposits
- Potential for tax deferred growth
- Wire fee reimbursements
- Diversify your retirement portfolio
Futures or Forex Broker who accepts IRA Accounts
Are you looking to rollover a self-directed IRA, or trade your trust account in the futures market? Let Back Bay Futures assist you with everything. Our experienced staff will help you choose the right broker, find the correct custodian, and simplify the rollover process for you.
Once you decide you are willing to open a self-directed IRA you need to decide which IRA is best for you? Take a look at the chart below to compare IRAs. Before you decide on the right IRA plan, it's always best to consult with your tax professional – the information we're providing is not tax advice and may change without notice.
|Traditional IRA||Roth IRA||SEP IRA|
|Consider if||You prefer your money to grow tax-deferred until you withdraw it in retirement. In many cases, your contributions are tax-deductible in the year they are made.||You're interested in both tax-free growth and withdrawals. Roth IRA contributions are not tax-deductible.||
You're an employee of a business with a SEP IRA
|Contribution Eligibility||Anyone under age 70½ with taxable compensation||Any age with taxable compensation||Anyone whose employer invites them to participate in a SEP.
Please note that employees cannot make personal contributions to a SEP IRA.
|Maximum Contribution Limits||For 2011:
Limits for 2012 are the same as those from 2011.
Income limits do not apply for Traditional IRAs.
Limits for 2012 are the same as those from 2011.
In 2011: For Single filers with income of $107,000 or less or Joint filers with income of $169,000 or less.
In 2012: For Single filers with income of less than $110,000 or Joint filers with income of less than $173,000
For self-employed individuals the limit are the same as those from 2011
|Tax advantages||Pay no taxes until you take distributions||Tax-free when you take distributions||Pay no taxes until you take distributions|
|Tax deductions||Depends on:
If you receive Social Security Benefits
|Contributions are not deductible||If employer contributions exceed certain limits, employees can't deduct their employer's contribution to their SEP plan.
If you are self-employed, you can generally deduct the contributions you make each year to your own SEP IRA.
Could include a 10% penalty if made before age 59½
Any earnings and conversion dollars (from other retirement plans) are tax free after the IRS' 5 year aging requirement has been met AND you are 59½ or older; otherwise, you could incur a 10% penalty.
Could include a 10% penalty if made before age of 59½
|Required minimum distributions||Mandatory at age 70½||Not required||Mandatory at age 70½|
|Annual deadline for contributions||The deadline for filing your annual tax return.||The deadline for filing your annual tax return.||The employer's deadline for filing its annual tax return, including any extensions.|
Back Bay Futures is neither advising nor recommending clients to trade their retirement funds within the futures market. Back Bay Futures is simply offering educated clients with a vehicle to trade their retirement funds within such a market after first considering the high level of risk involved. As always, Back Bay Futures advises clients trading within the futures market to not invest money that they cannot afford to lose and as such, investing retirement funds may not be suitable for many investors. Back Bay Futures recommends that any client, especially those considering investing retirement funds, consult with their investment counselor, attorney or accountant as to the appropriateness of such an investment. Trading futures and foreign exchange (futures) on margin is a challenging opportunity which carries a very high level of risk. The leveraged nature of futures trading can result in market fluctuations that work against you as well as for you and as a result you may lose more than your initial investment and may be required to pay additional funds. Therefore, before deciding to participate you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney or accountant as to the appropriateness of an investment in margin trading and leverage transaction products is recommended. Back Bay Futures is a member of the National Futures Association (NFA) and is a registered Introducing Broker with the Commodity Futures Trading Commission (CFTC).