IRA Debit Card and Checking Account
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The Entrust group is promoting their new offerings; the IRA Debit Card and the IRA Card Checking Account. Entrust CEO, Hugh Bromma says of the new products “Entrust’s ground-breaking IRA Card Checking(SM) service — both the IRA Debit Card(SM) product and The IRA Card Checking Account(SM) service — provides our account holders with a simple, handy, easy-to-use way to purchase an asset for their self-directed IRA (such as making a loan or purchasing precious metals), improve an existing IRA asset (i.e., building an addition onto a real estate investment property inside an IRA) or take a required minimum distribution (RMD)”
The IRA Debit Card, which is Visa branded, is the first such type of card on the market and offers intriguing possibilities. Cardholders can use the card at ATMs or to pay for both goods and services wherever Visa is allowed. This allows the cardholder to take the compulsory minimum distibution, as required starting at 70.5 years of age, from their retirement account in a convenient manner.
The IRA Debit Card and Card Checking Account offered by Entrust are an improvement over 401(K) cards offered in the past, as those cards offered people the ability to take loans from their retirement funds. Mr. Bromma says of the Entrust card ” Unlike other retirement plan-linked cards, our IRA Debit Card(SM) product and IRA Card Checking(SM) service do not have, or allow for, loans of any kind. Those are prohibited transactions. All available funds must be un-invested in the IRA (minimum $1,000 opening balance). Any transaction that is not an expense or asset purchase, for the IRA, is viewed as a distribution and will be administered as such.” There is no ability to overdraw the Entrust IRA Card Checking account, as only funds that have been added to the account will be accessible.
An important point to note is that Entrust is legally required to file reports to the IRS which indicate the value of any payments taken from a customer’s IRA. If a customer is exercising the option of using the card to purchase an IRA asset, they will have thirty calendar days to submit appropriate documents which prove the validity of such purchase.
