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 [...]

July 2nd, 2012

When it comes to using IRA and nonrecourse financing to make an IRA or Roth IRA investment, it is crucial that one keeps in mind several important tax rules. In most instances, investors using retirement funds to make an investment will use cash to make the investment. Whether the investment is in the form of [...]

June 19th, 2012

In general, most IRA custodians allow for individual IRA holders to make additional contributions to their already established self-directed IRA LLC structure. The logic behind this is quite clear once you have rules the rules under Internal Revenue Code Section 4975. Since the self-directed IRA LLC is wholly owned by IRAs, making additional IRA contributions [...]

March 27th, 2012

The Self Directed IRA Structure has been in use for some 35 years, however, the concept of using an entity owned by an IRA to make an investment was first reviewed by the Tax Court in Swanson V. Commissioner 106 T.C. 76 (1996). In Swanson, the Tax Court , in ruling against the IRS, held [...]

March 16th, 2012

One of the most discussed retirement topics involving the use of retirement funds to make investments is the Self directed iRA prohibited transaction rules. The self-directed IRA prohibited transaction rules are outlined in Internal Revenue Code Section 408 and 4975. The IRS and the Internal Revenue Code do not describe what a Self Directed IRA [...]

March 16th, 2012

When it comes to making an investment with self directed IRA funds, it is important to have a good grasp of the self directed IRA rules as well as the prohibited transaction rules as outlined in Internal Revenue Code Section 4975. The IRS and the Internal Revenue Code do not describe what a Self Directed [...]

March 5th, 2012

If you are self-employed and have retirement funds, then the Solo 401(k) Plan is an ideal structure for starting a new business or financing an existing business.

February 27th, 2012

Using a Self-Directed IRA LLC will allow you to purchase single family homes in a tax efficient manner, an investment Warren Buffet believes is a very attractive investment right now.