C Corporation UBTI/UBIT Tax Blocker Strategy To Gain Popularity for Self-Directed IRA Investors Due To Proposed Tax Plan

November 21st, 2017

Reduction in maximum corporate tax rate to 20% expected to increase use of C Corporation blocker for self-directed IRA private equity and real estate investment deals Adam Bergman, a partner with the IRA Financial Group, the leading provider of self-directed IRA LLC and Solo 401(k) plan solutions, expects to see a significant increase in the […]

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What Transactions Trigger the UBTI Tax with a Self-Employed 401(k)?

November 10th, 2017

In general, most passive investments that your Self-Employed 401(k), also known as a  Solo 401(k) Plan, might invest in are exempt from UBTI. Some examples of exempt type of income include: interest from loans, dividends, annuities, royalties, most rentals from real estate, and gains/losses from the sale of real estate. When an exempt organization such […]

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What Type of Self Directed IRA Investments are Subject to UBTI?

July 31st, 2017

In general, most passive investments that your Self-Directed IRA LLC might invest in are exempt from UBTI. Some examples of exempt type of income include: interest from loans, dividends, annuities, royalties, most rentals from real estate, and gains/losses from the sale of real estate. When an exempt organization such as an IRA undertakes any development […]

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What The Law Says About Unrelated Business Taxable Income In Non-Real Estate Investments

July 24th, 2017

This article, written by Adam Bergman, originally appeared on Forbes.com – For many retirement account investors, understanding how the Unrelated Business Taxable Income Rules work, also known as UBTI, UBIT, or debt-financed income rules, and how they may potentially apply to one’s retirement account investment has been a challenge.  The main reason is that the […]

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How Do the UBTI Rules Differ Between a Solo 401k and an IRA?

June 23rd, 2017

Like an IRA, the tax advantage of a Solo 401K Plan is that income is tax-free until distributed. In general, an exempt organization is not taxed on its income from an activity that is substantially related to the charitable, educational, or other purpose that is the basis for the organization’s exemption. Such income is exempt […]

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Hedge Fund Investing with a Self-Directed IRA

June 5th, 2017

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 retirement savings […]

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UBTI Rules When Using a Self-Directed IRA for Real Estate Transactions

April 12th, 2017

With a Self-Directed IRA with checkbook control, flipping homes or engaging in a real estate transaction is as simple as writing a check. As manager of your Self-Directed IRA LLC, you will have the authority to make real estate investment decisions on behalf of your IRA on your own without needing the consent of an […]

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UDFI And Using A 401(k) Plan To Buy Real Estate

February 27th, 2017

One of the advantages of using retirement funds, such as a Solo 401(k) plan, to make investments is that, in most cases, all income and gains from the investment will flow back to the 401(k) plan tax-deferred or tax-free in the case of a Roth. This is because a 401(k) plan is exempt from tax […]

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