Archive for the ‘Prohibited Transactions’ Category

Peek v. Commissioner – Personal Guarantee of Loan Triggers Self-Directed IRA Prohibited Transaction

June 18th, 2013

In Peek v. Commissioner (May 9, 2013), the U.S. Tax Court ruled that a taxpayer’s personal guaranty of a loan by a corporation owned by the individual’s IRA is a prohibited transaction under section 4975(c)(1)(B). The Court found that the taxpayers had provided an indirect extension of credit to the IRAs, a prohibited transaction under [...]

June 4th, 2013

When using a Solo 401(k) to make a real estate investment there are a number of ways you can structure the transaction: 1. Use your Solo 401(k) funds to make 100% of the investment If you have enough funds in your Solo 401(k) to cover the entire real estate purchase, including closing costs, taxes, fees, [...]

May 23rd, 2013

An IRA prohibited transaction issue at the center of a tax court case could have been avoided with IRA Financial Group’s self directed IRA compliance service. A recent U.S. Tax Court decision highlights the importance of working with tax professionals before using retirement funds to make an investment involving alternative assets. In Peek Vs. Commissioner, [...]

May 20th, 2013

IRA Financial Group, the leading facilitator of Self-Directed IRA LLC and Solo 401(k) Plans, announces a new free webinar as part of its educational series on the area of tax planning opportunities available for individuals and small business owners with retirement funds. The free webinar will be aimed at offering investors an extensive array of [...]

March 5th, 2013

When it comes to making investments with a self-directed IRA LLC, the IRS generally does not tell you what you can invest in, only what you cannot invest in. The types of investments that are not permitted to be made using retirement funds is outlined in Internal Revenue Code Section 408 and 4975. These rules [...]

March 1st, 2013

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 [...]

September 20th, 2012

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. Internal Revenue Code Section 4975(c)(1)(C) states that the direct or indirect furnishing of goods, services, or facilities between an [...]