Archive for October, 2012

Is the Checkbook Control IRA Solution Legal?

October 30th, 2012

The legality of the Checkbook IRA structure has not come under question since the IRS conceded that investing IRA funds in a wholly owned entity is not a prohibited transaction in the U.S. Tax Court case Swanson V. Commissioner 106 T.C. 76 (1996). In light of Swanson, some IRA custodians are still trying to mislead […]

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Does the IRS Allow one to use a Real Estate to Buy Rental Properties?

October 30th, 2012

Since the creation of IRAs back in the early 1970s, the IRS has always permitted an IRA make real estate related investments. In fact, it states it right on the IRS website when discussing IRA investments. By using a real estate IRA, also known as a Self Directed IRA to buy real estate, the IRA […]

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Can I Have a SEP IRA and a Solo 401(k) Plan at the Same Time

October 30th, 2012

There is no exclusive plan rule for a Solo 401(k) Plan and SEP IRA.  Only a SIMPLE IRA has an exclusive plan rule, meaning one can not combine a Solo 401k Plan with a SIMPLE IRA.  Even though one can have a SEP along with a Solo 401(k) plan, there is generally not many benefits […]

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What is an RMD?

October 29th, 2012

Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner […]

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