IRA Financial Group, the leading provider of “checkbook control” self-directed IRA and Solo 401(k) Plans announces the finding of its monthly report which found that an increasing number of retirement investors were looking to purchase distressed municipal debt, such as Detroit and Puerto Rico debt using their self directed IRA LLC or Solo 401(k) Plan accounts. “We have seen a surge in interest from retirement account investors looking to use a tax-deferred self-directed IRA or Solo 401(k) Plan account to buy Detroit and Puerto Rico bonds at depressed prices, “ Stated Adam Bergman, a tax attorney with the IRA Financial Group. “Detroit’s bonds have become a very hot topic with self-directed retirement investors since the Motor City filed for the largest municipal bankruptcy two weeks ago,” stated Mr. Bergman.
According to Mr. Bergman, “many retirement investors who have some experience investing in troubled or bankrupt companies think these bonds will turn out to be lucrative in the long run.
The problem is there aren’t that many available. “ Typically when a taxpayer purchases a municipal bond, such as Detroit, one of the advantages is that the interest generated by the bond is exempt from tax, which is quite attractive to high net worth individuals. Such a tax exemption is typically not very attractive to tax-exempt investors, such as a pension plan or IRA since they are already exempt from tax. “Interestingly, retirement investors have shown strong interest in purchasing tax-exempt municipal debt, such as Detroit, Puerto Rico, and Illinois even without the added tax benefit, “ stated Mr. Bergman.
The primary advantage of using a Self Directed IRA LLC and Solo 401(k) Plan to make investments is that all income and gains associated with the IRA investment grow tax-deferred.
Using IRA Financial Group’s self directed IRA LLC with “checkbook control” solution to make investments offers a number of very interesting investment opportunities, including the ability to diversify ones retirement portfolio with real estate, precious metals, and other alternative investment options. With IRA Financial Group’s self directed IRA LLC solution or Solo 401(k) Plan, traditional IRA or Roth IRA funds can be used to make non-traditional investments, such as real estate to better diversify themselves from a falling stock market.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP. For more info, please contact one of our tax experts @ 800.472.0646!