LROs, or Limited Recourse Obligations, are a debt security offered on our investing platform. Groundfloor submits these to the SEC for qualification. Each loan is backed by the underlying real estate asset, which mean you as the investor are put in a first lien position, making this investment in real estate debt inherently less risky than investing in real estate equity.
Groundfloor allows everyday investors, both accredited and non-accredited alike, to invest fractionally in qualified for public sale real estate projects nationwide.
A tax-deferred savings program that allows individuals to invest earned income in a retirement savings account. Traditional IRAs are the most common accounts individuals use to save for their retirement.
A Traditional IRA can be a good option for individuals who want to save for retirement while receiving a tax deduction for their contributions. The tax-deferred growth can help the account balance grow over time, and the flexibility of investment options can allow the individual to tailor their portfolio to their needs and risk tolerance. However, it’s important to be aware of the potential tax consequences of withdrawals and the required minimum distributions.
ROTH IRA contributions are not tax-deductible, however, once you are 59 1/2 and the account has been established for a minimum of 5 years, funds can be withdrawn tax-free at any time. To contribute to a ROTH IRA in 2023, you must have a modified adjusted gross income below $138,000 (single) or $218,000 (married filing jointly).
Tax Treatment: Unlike a traditional IRA, contributions to a Roth IRA are made with after-tax dollars, which means that you don’t get an upfront tax deduction. However, the earnings in a Roth IRA grow tax-free, and qualified withdrawals are tax-free as well. This can be a significant advantage over a traditional IRA, especially if you expect to be in a higher tax bracket in retirement.
Required Minimum Distributions: Different from a traditional IRA, there are no required minimum distributions (RMDs) from a Roth IRA during your lifetime. This means that you can leave the money in the account to continue growing tax-free for as long as you like.
Overall, a Roth IRA can be a powerful retirement savings tool, especially for those who expect to be in a higher tax bracket in retirement. By paying taxes on contributions upfront, you can enjoy tax-free growth and withdrawals in the future.
A Simplified Employee Pension (SEP) IRA allows self-employed individuals or small business owners employers a way to make contributions to their employee’s retirement.
Any business owner or self-employed individual can open a SEP IRA, regardless of the size of their business. In order to contribute to a SEP IRA, you must have earned income from self-employment or from your business. Employees of the business may also be eligible to participate in the plan.
A SEP IRA can be a good option for small business owners and self-employed individuals who want to save for retirement and offer a retirement benefit to their employees. With tax-deductible contributions and tax-deferred growth, a SEP IRA can help individuals build a retirement nest egg while minimizing their tax liability.
A Savings Incentive Match Plan for Employees (SIMPLE) is a tax-favored retirement plan that employers can set up for their employees.
Both the employer and the employee can make contributions to the SIMPLE IRA. The employer must make either a matching contribution (up to 3% of the employee’s compensation) or a non-elective contribution (2% of the employee’s compensation). Employees can contribute up to $13,500 in 2022, or $16,500 if they are age 50 or older.
Withdrawals from a SIMPLE IRA are subject to the same rules as a traditional IRA. Withdrawals before age 59 1/2 may be subject to a 10% early withdrawal penalty, in addition to ordinary income taxes. There are also required minimum distributions (RMDs) that must be taken starting at age 72.
A Rollover IRA is a traditional IRA that is typically used by those who want to move retirement savings from an employer-issued 401(k) to another retirement plan.
Self-directed IRAs provide a unique way for Groundfloor investors to diversify their retirement assets while taking advantage of the tax advantages of IRAs. Groundfloor working with our IRA custodian, Forge Trust, enables individuals and businesses to earn the high returns that Groundfloor is generating while realizing the tax benefits of an IRA.
Groundfloor offers an alternative investment opportunity for investors to build their own portfolios of real estate loans ranging in yield from 5% to 23%. When these assets are held in an IRA, earnings may grow tax-deferred (Traditional IRA) or tax-free (ROTH IRA), helping investors maximize their contribution amounts today while saving for retirement. Ea, consequatur.
Opening a Groundfloor IRA account is straightforward. Simply click here to get started or if you already have a Groundfloor Investor Account, log in and click the top-right section of the page and choose “Open an IRA Account”.
Now is a great time to sign up for a GROUNDFLOOR IRA Account! In addition to taking advantage of the tax benefits of investing through an IRA, Groundfloor will waive all fees associated with IRA accounts through 2023. If/when we do charge investor fees, we will provide all users at least 90 days notice.
When you log in to your Groundfloor IRA account, select “CONTRIBUTE & TRANSFER”. Our site will then guide you through the process of transferring funds from an existing IRA custodian, directly contributing funds via check or rolling over funds from an existing retirement plan such as an employer-issued 401(k). Expect 2-4 weeks for contributions to complete.
Take the time to familiarize yourself with IRAs as an investment vehicle and consult an advisor to talk about tax, legal and financial benefits and responsibilities. It’s great to be hands-on, but you don’t want to risk the chance of being penalized for breaking an IRS rule. Stay in control, and stay ahead of your IRA investing, by consulting a subject matter expert.
Yes. Moving your IRA from another custodian to Groundfloor requires a bit of information. To rollover an account to us from another custodian, please open and log into your account.
A request to transfer funds will begin processing within two business days. Cash-only transfers typically take a few business days to begin processing.
Groundfloor (LROs)
A copy of these materials may also be obtained for free on the SEC’s website at www.sec.gov.
* 10% returns based on previous 8 years of historical returns and current available investments, ranging from 4% – 14%, barring any losses.
PLEASE SEE OUR OFFERING CIRCULARS BELOW:
The information on this website does not constitute an offer to sell the limited recourse obligations (or “LROs”) identified herein in any state or jurisdiction in which the issuer is not qualified to do so. Securities are offered and sold under Regulation A of the Securities Act of 1933 (“Regulation A”) only to investors who are residents of the states in which Groundfloor Finance Inc. (“Groundfloor”), or one of its affiliates has either qualified an offering statement under Tier 1 of Regulation A or made notice of its intent to offer and sell securities under Tier 2 of Regulation A. Groundfloor, or its affiliates, may also offer securities to accredited investors. Investors who believe they qualify as accredited investors may access additional information about these offerings here .
Groundfloor or one of its affiliates has filed offering circulars and post-qualification amendments (or “PQAs”) (including supplements to such filings) with the Securities and Exchange Commission (the “SEC”) covering the current offering of LROs. An investment in LROs entails risk of loss, and you may lose all or part of your investment. Each investor should carefully consider the risk factors and other information discussed in the qualified offering circulars/PQAs (and current supplements, if any) before purchasing LROs.
Some statements in the offering circulars/PQAs and on this website may contain forward-looking statements and are based upon current expectations, plans, estimates, assumptions, and beliefs that involve numerous risks and uncertainties. Although Groundfloor believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. You should consult with your own attorneys, accountants, and other professional advisors prior to making an investment.
The information on this website does not constitute an offer to sell or a solicitation of interest in any LROs that may be qualified in the future. No money or other consideration is being solicited with respect to any LROs that have not been duly qualified, and if sent in response, will not be accepted. No offer to buy any LROs that have not been duly qualified can be accepted and no part of the purchase price can be received until an offering circular/PQA covering such LROs has been qualified by the SEC. Any such offer to buy unqualified LROs may be withdrawn or revoked, without obligation of any kind, at any time before notice of its acceptance is given after the date of qualification. An indication of interest in our offerings involves no obligation or commitment of any kind.
The information contained in the Offering Circular and offering materials presents a general summary of the business and the purpose and principal business terms of an investment in LROs. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the offering circulars/PQAs.
Articles or information from third-party sources outside of this domain may discuss Groundfloor (or its affiliates) or relate to information contained herein, but Groundfloor and its affiliates do not approve and are not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party content, do not constitute an approval or endorsement by Groundfloor or any of its affiliates of the linked or reproduced content.
Neither the SEC nor any state securities commission or regulatory authority approved, disapproved, endorsed, or recommended the merits of the offering described in the offering circulars/PQAs or reflected on this website. Groundfloor’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”).