Menu Close

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

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 number of C Corporation blockers used in light of the Republican tax plan to reduce the top corporate tax rate from 35% to 20%. Because using a self-directed IRA or 401(k) plan to make certain investments in businesses via passthrough entities, such as an LLC or real estate transactions involving debt can trigger the unrelated business taxable income tax, also known as UBIT or UBTI, which can go as high as 39.6%, using a C Corporation blocker strategy could reduce the tax to 20%. “The reduction in the maximum corporate tax rate to 20% should make the C Corporation blocker strategy quite attractive for many self-directed IRA investors facing a 39.6% tax rate if their IRA or 401(k) investment triggered the UBTI/UBIT tax,” stated Adam Bergman, a partner with the IRA Financial Group.

IRA Financial Group is the market’s leading provider of self-directed IRA LLC and Solo 401(k) plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

Adam Bergman is a partner with the IRA Financial Group, LLC, the markets leading provider of Self-Directed IRA LLC and Solo 401(k) Plans. Mr. Bergman is also the President of IRA Financial Trust Company, a Self-Directed IRA custodian. Mr. Bergman is the author of the books titled “Going Solo: America’s Best Kept Retirement Secret For the Self-Employed,” “The Checkbook IRA: Why You Want It, Why You Need It,” “Turning Retirement Funds Into Start-Up Dreams,” and “In God We Trust – In Roth We Prosper” available on Amazon, and is a frequent contributor to Forbes.

To learn more about the IRA Financial Group please call 800-472-0646. To learn more about establishing a self-directed IRA account with the IRA Financial Trust Company please visit or call 800-472-1043

Share the knowledge
Posted in Self-Directed IRA