Archive for February, 2013

Can I use a Credit Card with a Self-Directed IRA LLC?

February 28th, 2013

In general, the Internal Revenue Code does not describe what a Self Directed IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits Disqualified Persons from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of […]

Read More →




How to Protect Yourself Against a Potential IRA Prohibited Transaction

February 26th, 2013

In the case where a potential transaction involving an IRA could raise a prohibited transaction, establishing a separate IRA for any additional IRA funds in the IRA account that may have engaged in a prohibited transaction may prove to be a safe course of action.  The reason for this is because a prohibited transaction would […]

Read More →




Can I Pay Expenses From a Self-Directed IRA Real Estate Investment with Personal Funds?

February 26th, 2013

In general, when it comes to making self-directed IRA real estate investments, all expenses associated with the IRA owned real estate must be paid using IRA funds.  In other words, payment of any expenses associated with the self-directed IRA real estate investment must be made using IRA funds and not by the IRA owner.  The […]

Read More →




What Type of Coins Can I Purchase with a Self-Directed IRA?

February 26th, 2013

In general, the IRS does not tell you what type of investment you can make using retirement funds, only the type of investments that are prohibited.  These types of transactions are referred to as the “Prohibited Transaction” rules. Internal Revenue Code Section 408(m) lists the type of precious metals and coins that are permitted investments […]

Read More →




How to Calculate Tax on Using Nonrecourse Loan with a Self-Directed IRA

February 24th, 2013

IRS Form 990-T, specifically Schedule E, is the tax form where a charitable organization of retirement account, such as an IRA or Roth IRA would report income that would be subject to the Unrelated Business Taxable Income (also known as UBIT or UBTI) or Unrelated Debt Financed Income tax.  In general, only income generated from […]

Read More →




Can I use a Self Directed IRA LLC to invest in real estate?

February 21st, 2013

The IRS has always permitted real estate to be held inside IRA retirement accounts. Investments with a Real Estate IRA are fully permissible under the Employee Retirement Income Security Act of 1974 (ERISA). IRS rules permit you to engage in almost any type of real estate investment, aside generally from any investment involving a disqualified […]

Read More →




What is an Individual Retirement Account(IRA)?

February 15th, 2013

Individual Retirement Accounts (IRAs) exist in many forms. The most common type is the IRA or individual retirement annuity to which any person with earnings from employment may contribute. These type of IRA plans are referred to as contributory IRAs. IRAs that are used to receive assets distributed from other retirement plans are called rollover […]

Read More →




Does the IRS allow the use of retirement funds to purchase stock in a business I will be involved in?

February 4th, 2013

Yes. The Internal Revenue Code and ERISA have firmly codified the ability to use retirement funds to invest in the stock of a sponsoring company as long as certain IRS and ERISA rules are followed. Internal Revenue Code Section 4975(c) includes a list of transactions that the IRS deems “prohibited”. However, Internal Revenue Code Section […]

Read More →