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Zia Trust’s Services

Reasons to select Zia Trust, Inc. as your Corporate Trustee:

  1. Experienced trust management with most types of assets and fiduciary appointments.
  2. Operations are in compliance with State regulatory standards.
  3. Reliable, Local and personalized service.
  4. Objectivity in administration and decision making.
  5. Independent of family relationships, but concern for individuals and unique situations.
  6. We work alongside professional advisors of your choice: Investment Advisors, Attorneys, CPA’s

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Trust Services

Personal Trusts

  • Revocable and Irrevocable
  • Conservatorships
  • Charitable Trusts
  • Custodial Trusts
  • Testamentary Trusts
  • Estate Administration and Probate Services
  • Support Services for Private Trustees
  • Trusts with Closely Held Businesses
  • Elder Care Trusts
  • Special Needs Trusts
  • Medical Care Reversionary Trusts
  • Other types of Trusts

Employee Benefit Trusts

  • 401(k) Plans
  • ESOPs
  • Deferred Compensation Plans
  • Defined Contribution or Defined Benefit Plans

Irrevocable Life Insurance Trusts

Self-Directed IRA's

Individual Retirement Accounts

IRAs were established under the Employee Retirement Income Security Act of 1974. Under the Act, contributions and any earnings on IRA assets are generally not subject to federal income tax until you actually begin to receive distributions from your IRA.

Zia Trust, Inc. specializes in offering custody services for “unconventional assets” in a self-directed IRA. This is the area where we have knowledge and time-proven experience.

Did you know that there are different types of self-directed IRAs?

  • Traditional
  • Roth
  • SEP
  • SIMPLE
  • Coverdell (Educational)

Each of these has different tax benefits.

With Zia Trust, Inc. you have ability to hold in your self-directed IRA such "UNCONVENTIONAL" OR UNIQUE ASSETS as:

  • Real Estate Property (vacant land, rental property, etc.)
  • Real Estate Contracts
  • Real Estate Mortgages
  • Closely Held Stocks
  • Promissory Notes
  • Limited Liability Companies
  • Limited Partnerships

With Zia Trust, Inc. you also can invest in stocks, bonds, mutual funds, annuities, and CDs. Diversified, self-directed IRAs can provide both wealth and security for your retirement.

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Contributions

Contributions to your IRA may be either transfer or rollover contributions, personal contributions or a re characterized contribution from a Roth IRA. Transfer or rollover contributions, which may be of any amount, are eligible contributions from an IRA or a tax-qualified retirement plan. Personal contributions must be made in cash or cash equivalents.

Limitations on Contributions

Type of IRA Tax Year Contribution Limit Age 50 and Over Limit
Traditional/Roth 2009 - 2010 $5,000 $6,000
SEP The maximum percentage of compensation that may be contributed to a SEP is 25%. The amount of eligible employee compensation that may be considered for employer contributions is $245,000. The maximum annual contribution limit is $49,000 per eligible employee for 2010.

Limited Role Of Custodian And Fair Market Value Of Assets

Zia Trust, Inc. provides periodic statements of your IRA and its holdings to you, and receives, records and reports fair market value (FMV) information to you. Zia Trust is also required to report FMV information to the IRS on Form 5498. It is your responsibility to provide Zia Trust with the FMV for each investment in your IRA as of December 31st of each calendar year, and if necessary, provide a limited or full professional appraisal in order to determine such value to our satisfaction.

“Fair Market Value of Assets”

Zia Trust, Inc. is not in the business of providing appraisals of the fair market value of assets held in your self-directed IRA. Zia Trust, Inc. is responsible for reporting by May 31st of every year to you, on Form 5498, what the fair market value of the IRA account is, and how much was contributed to the account during the preceding calendar year. Zia Trust, Inc., reserves the right to refuse the addition of any asset of which a fair market value cannot be established. A professional appraisal of the asset may be required before Zia Trust, Inc. undertakes custodianship of your IRA or before the asset is transferred to the IRA. A professional appraisal may also be required at the end of the calendar year (if a fair market value cannot be established at that time) or if an asset is distributed out to you. In addition, Zia Trust, Inc., requires that all assets held in your IRA account longer than one year, be valued every three years from date of acquisition, using a comparative sale, income or market analysis, and if necessary, at the discretion of Zia Trust, Inc., using the services of an independent professional appraiser.

Please note that Zia Trust, Inc. reserves the right to withdraw as Custodian of the IRA if an Escrow Company is unable or unwilling to provide appropriate services in a timely manner.

Prohibited Assets

These assets are specifically prohibited from being held in an IRA by the IRS.

Life Insurance: The IRA is disqualified if it purchases life insurance contracts.

Collectibles: Collectibles include any work of art, rugs, antiques, metals, gems, stamps, coins or alcoholic beverages. One notable exception to this rule is certain US minted gold and silver coins acquired after 1986. If an IRA invests in collectibles, the IRA is not disqualified, but rather a distribution equal to the cost of the collectibles will occur.

S Corporation Stock: The IRA is not a qualified trust permitted to own the stock of an S Corporation, and any ownership of such stock will cause revocation of the S Corporation election, and taxability as a C Corporation. However, new law does permit Traditional and Roth IRAs to hold shares in a "bank" that is an S corp.

Please note that there are some tax and business considerations that should be weighed when using an IRA to invest in "unconventional" or "unique" assets.

**Zia Trust, Inc. highly recommends that you consult your Financial Advisor/CPA and/or Attorney before entering into any questionable asset purchases through your IRA.**

Clients who are investing in LLC's or real estate should consult with their CPA to determine if their investment will create a UBTI (Unrelated Business Taxable Income) that should be reported to the IRS on a Form 990T. Prior to investing, the client should notify Zia Trust, Inc. if this will occur.

Prohibited Transactions

Generally, a prohibited transaction is any improper use of your IRA account by you, your beneficiary, or any disqualified party. Examples of disqualified parties include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant.)

The Following Are Examples of Prohibited or Taxable Transactions:

  • Borrowing money from the IRA
  • Selling property to the IRA
  • Using the IRA as security for a loan

As custodian for your self-directed IRA, we aim to provide you with the most complete and accurate information available to assist you in making allowable investments for your future.

Along with our assistance you receive:

  • self-direction: you have complete control of your investments
  • flexible diversification of your investments within one consolidated account
  • automatic reinvestment of dividends or earnings at no extra charge
  • a customized distribution schedule which allows you to choose any frequency for account withdrawals (checks, ACH, wire feature available)
  • no transaction fees
  • immediate personal response by the IRA administrator or her assistant.

Our fees are reasonable and very competitive. Our fee schedule is available by calling us at (505) 881-3338 or toll free (800) 996-9000 or via email at smcguire@ziatrust.com. We would be happy to send fee information and answer your questions.