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Investing with Gemini, Using ROBS and more | Client Q&A

AdMail Podcast
3 Minute Read

In this week’s episode, IRA Financial’s Adam Bergman Esq. answers questions about the IRA Financial/Gemini relationship, adding capital to a ROBS-funded business and how to distribute a property with an outstanding loan.

Question 1 from YouTube: Is the IRA Financial Gemini account special or can the money be drawn out to other cryptocurrency addresses just like a normal Gemini account? What controls does IRA Financial hold over the Gemini funds?

In case you don’t know, IRA Financial and Gemini have a relationship where one can set up a Self-Directed IRA with IRA Financial and trade cryptos on the Gemini Exchange, without the need of an LLC or third-party broker. You are in charge of the investments. IRA Financial simply sets up the plan and administers it. There are no IRS reporting issues, since the Gemini account is in the name of the IRA, and not you, the IRA owner.

Therefore, IRA Financial has no control over the crypto account. Once it’s set up, we are hands-off. You have the freedom to buy, sell and trade cryptos at your leisure. You are control of the wallet and private key and can decide what to do with your funds/investments. Essentially, the account is just like any Gemini account, it’s simply owned by your IRA and can take full advantage of the tax benefits of the plan.

Question 2 from Harold T in Rochester, NY: I set-up a ROBS with your company and now need to add more retirement funds to the business. I have seven full-time employees – what is the process?

The Rollover Business Startup or ROBS, is a way one can use retirement funds to start a business or fund a business if needed. It’s the only way one can use retirement funds to be personally involved with a business, without taking a loan. You can then offer a retirement plan to your employees, which you can contribute to as well.

If, after setting up the ROBS, you want to add more retirement funds into the business, you have two considerations. First, you need to get the corporation valued, to set a price for the stock of the business. Secondly, to get more retirement funds into the business, you have to buy more stock. However, if you want to do this, you must give all seven of your employees (assuming they are plan participants) the ability to do the same thing. You may or may not be comfortable with this idea.

If this doesn’t appeal to you, you would have to look at other avenues, such as a loan, to get more retirement funds into the business. If you had no other full-time employees, you just need the valuation and then you can purchase more stock with your retirement funds.

Question 3 from Nick M in Mesa, AZ: I want to take distribution of property. But property has outstanding nonrecourse Loan on it. The lender requires full payoff before they transfer title ownership. What are my options?

Obviously, there is a lien on the property that the lender wants satisfied before transferring the title. You need to work with the lender to take the distribution. The lender has recourse to the property, but you do have options, assuming the lender will work with you. Essentially, you can take the distribution of the property and agree to refinance with other funds. Of course, you need the lender’s consent. When the title is moved from the IRA to you, personally, you can get a mortgage, with a decent rate.

Obviously, you need to pay tax on the property distributed, including the nonrecourse loan. Once you distribute the property, you can pay off the nonrecourse loan and own the property personally, with or without a mortgage. The key is the lender. Hopefully, they work with you so that you can get the property out of your IRA so you can use it personally.

AdMail – Keep it Coming

We hope you enjoyed the latest episode of AdMail. Mr. Bergman will continue to respond to questions each week so long there is a demand for them! If you have any questions for him, email him at

As with his other podcasts, you can check out AdMail on SoundCloud. Be sure to subscribe to know when the next one pops up! Thanks for listening and have a great day, Self-Directed Nation!

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