COVID-19 & Midland Trust Q&As

COVID-19 & Midland Trust Q&As

Q: Is Midland open?

A: Midland is fully operational and prepared to serve your needs. We are asking that clients do not visit our offices to help prevent the spread of COVID-19. We are available at (239) 333-1032 Monday – Thursday from 8:30 am – 5:00 pm EST and on Fridays from 8:30 am – 4:00 pm EST.

Q: When do I need to file my taxes?

A: The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Q: What are the due dates for 2019 HSA and IRA payments normally due on April 15th?

A: On March 25th, the Treasury Department clarified that the deadline for making Individual Retirement Account and Health Savings Account contributions for the 2019 tax year has been extended to July 15, 2020.

Q: Will my 1031 Exchange deadlines change?

A: Yes, if your deadline falls between April 1 and July 15, 2020. The IRS has issued deadline relief for both 1031 like-kind exchanges and opportunity zone investments that are already underway.

Creating a Strategic Partnership With Midland

Creating a Strategic Partnership with Midland

Raising capital can be a daunting task that involves many phone calls, networking, and paperwork. Not to mention a good portion of the population may not even be qualified, as some investments require them to be accredited investors. This is often the case with hedge funds, real estate syndications, and private equity funds. Learn how a strategic partnership with Midland helps!

Raise Funds More Quickly By Asking One, Simple Question

DO YOU HAVE RETIREMENT FUNDS?” Many accredited investors and investment sponsors are unaware that retirement funds can be used for investments in hedge funds, real estate syndications, and private equity funds. This can be a win-win for both parties as it may help investment sponsors raise capital more quickly. To the investor, this may be a delightful surprise as retirement funds in a 401k, IRA, HSA and ESA have tax advantages and allow gains from the investment to grow tax-deferred. If the retirement funds are in a Roth IRA or Roth 401k, they may not have to pay taxes at all on gains from their investment!

Just to give you an idea of how much capital is available in retirement funds, see the below charts:

Fidelity 401(k) millionaires by quarter.
Quarterly retirement market assets (in trillions).
Yearly Health Savings Account assets (in billions).

How Partnering With Midland Simplifies the Investment Process

If they are an accredited investor and answer yes to the question “DO YOU HAVE RETIREMENT FUNDS?”, send them to Midland and we will assist with the movement of funds and funding the investment.

Investing in alternative assets such as a hedge fund, a real estate syndication, or a private equity fund using retirement money does require more paperwork. There needs to be proper record keeping of the movement of funds and proper titling of the investment in order for the investment to be allowed in a tax-deferred account. This is where Midland comes in and simplifies the process for investors and investment sponsors. For Limited Partnerships, LLCs, and private stock offerings, Midland’s OnePath Tool can streamline the investment process. An investment can setup OnePath to get a custom link to send to their investors. Midland’s OnePath allows new account holders to complete the investment documents all in one, online setting. OnePath speeds up and simplifies the new account process and best of all, it’s free of charge to get your investment setup.

Upon setup of the Midland account, the investment sponsor and clients will be assigned a dedicated representative at Midland to work with. The dedicated representative establishes a personal relationship with the investor. Most investors prefer having a dedicated representative over calling a 1-800 number and speaking to a different representative every time. We have a full team of highly trained specialists able to assist with retirement funds. We pride ourselves on being one of the most responsive IRA custodians in the industry and look forward to helping you or your clients with starting a private investment in a retirement plan today.

For questions or more information about creating a strategic partnership with Midland, contact us by calling (239) 333-1032, or visit

Important News About Paying Your 2019 Taxes

Important News About Paying Your 2019 Taxes

In a Press Conference on March 17, 2020, Treasury Secretary Steven Mnuchin stated that the administration and the IRS would be moving forward with a 90-day extension to pay 2019 income taxes, otherwise due on April 15, 2020.

Individual taxpayers can delay paying their income taxes on as much as $1 Million owed for up to 90 days. Corporate filers would have the same 90-day period to pay up to $10 Million in owed taxes.

This delay applies to federal returns only. You should check with your state’s tax deadlines as several states have rolled out delays as well. California is granting a 60-day delay for affected individuals and businesses unable to file on time. Maryland is giving additional time for specific business tax returns and will grant an extension to individuals if the federal government moves forward on its 90-day delay. You can check on your states’ tax developments here.

During this 90-day federal delay period, taxpayers’ owed taxes will be interest-free and penalty-free for 90 days, according to Mnuchin’s Press Conference statements.

If at all possible, you should complete your return by April 15th, especially if you are expecting a refund and need cash.

At Midland, we are committed to keeping our clients informed of these changes in the financial industry. If you have any questions about how this may affect your tax filings, contact your accountant or financial advisor.

Click here to view the full Press Conference transcript from March 17, 2020.

Top 3 Reasons to Use a Self Directed IRA LLC to Invest

Top 3 Reasons to Use a Self-DIrected IRA LLC to Invest

Single-Member LLCs used to invest in an IRA are also known as checkbook or checkbook control IRAs. Often called a self directed IRA LLC, these are somewhat sophisticated investing structures that have great benefits to facilitate the investing processes. However, these accounts are complex, as the plan owner must adhere not only to the rules of self direction but also to those regarding limited liability companies.

Regardless, many investors who believe the benefits far outrank the rules and paperwork favor the use of checkbook control IRAs.

Why Do People Use a Self Directed IRA LLC?

  1. To enjoy the protections that typical LLCs offer with a bonus in gaining the Freedom to Invest™ in alternative assets. Real estate, private equity, private lending, gold, and much more can be held in checkbook IRAs and have the potential to increase retirement earnings.
  2. For quick access to investing funds allowing timely asset acquisition. Account owners don’t have to go through the IRA administrator to buy and sell property, which can take some time. Checkbook control lets investors skip that step and purchase assets with funds already held in the LLC’s bank account.
  3. When investing in multiple properties, investing in the LLC allows the IRA owner to avoid multiple asset fee charges they may incur from the IRA administrator. Think of the LLC as being the only investment inside the IRA. Regardless of how many assets the LLC acquires, the IRA only recognizes the LLC as an investment when determining asset-based fee charges.

How Do Single-Member LLCs Work With a Self Directed IRA?

Before you use a self directed IRA LLC, you must first understand how it works.

Your IRA forms an LLC and is the only member of that entity.

  • As the IRA owner, you can be designated as the manager of the LLC, which allows you to set up a bank account in the name of the entity.
  • Funds are moved from the IRA and deposited into the LLC’s bank account.
  • You now have checkbook control to write checks from that account to purchase your investments.

The Role of Managers

The manager has important responsibilities. You are required to keep thorough and detailed paperwork that pertain to the operation of the LLC. You must also know the rules that govern the self directed investing accounts inside and out. We strongly advise that you get help from a tax attorney, CPA, or other financial professional to ensure the LLC is set up correctly and runs in compliance of IRS standards.

Also, when you use a self directed IRA LLC, you lose the oversight of your self directed plan administrator in some areas. It is critical that you educate yourself on how to invest and maintain your account in compliance with the IRS . If you don’t, you run a huge risk of incurring heavy penalties and/or taxation. Your IRA may also lose its tax-sheltered status. Know the regulations to prevent this from happening because this risk does not outweigh the benefits of having checkbook control of your hard-earned retirement funds.

Clients of Midland receive one-on-one attention and service when investing in their self directed IRAs. Contact us at any time if you have questions about self direction, IRS rules, and prohibited assets. We are here to help give you the information you need in order for you to make an informed decision on your path to reaching financial freedom in retirement—and to help ensure your account maintains its tax-sheltered benefits to reach that goal.