P2P lending service Lending Club, today announced the availability of the first Self-Directed Individual Retirement Account to enable investments in peer lending. EntrustCAMA, part of the Entrust Group, serves as the administrator for these accounts.
This new Self-Directed IRA investment choice gives individuals the ability to build a portfolio of Lending Club notes and hold that portfolio in a tax-free or tax-deferred account. To meet the Federal deadline for this tax season, applications must be completed online, printed and postmarked before April 15, 2009. The account application is available at https://www.lendingclub.com/sdIRA/registerIRA.action
Key benefits stated:
- Potential for high returns. Choose from a diversified group of hundreds of qualified borrowers.
- Tax advantages. Investments in a Self-Directed IRA can grow tax deferred until retirement age.
Select the type of IRA which is right for you:
Individuals: Traditional or Roth
Small businesses: SIMPLE or SEP
Fund the IRA directly with a check or an existing account (IRA or 401K) to transfer or rollover.
- A Diversified Retirement Portfolio. This Self-Directed IRA gives your portfolio access to Lending Club Notes, going beyond traditional stocks, bonds and mutual funds.
- No account opening fees
- One flat 250 US$ annual account maintenance fee starting in 2010 when you open an account before April 15, 2009
- No other fees
- Low minimum starting contribution of 5,000 US$
Sources: press release, Lending Club website