Posts Tagged "IRS Prohibited Transactions"

IRA LLCs and 401(k) Plans — Where to Hold Precious Metals?

Over the years, this has been a much-discussed and frequently debated topic for those individuals who wish to hold precious metals in their IRA LLC or 401(k) plan.  Must you only use a depository?  Can you use a bank?  Can I have them at my home? Historically, it depends on who you ask?  Here’s the typical lines: Coin Depository — You…read more →

A Little Peek at New IRS IRA Reporting Requirements

Speak of the devil, while I just did a blog on new IRA reporting requirements for 2015, the IRS has come out with a “DRAFT” copy of a newly-proposed Form 5498.  The primary (if not sole) purpose of this draft form, and what will be a final revised Form 5498, is to ascertain and report the FMV (Fair Market Valuation)…read more →

401(k) Loans and Prohibited Transactions

Self-directed IRA and Solo 401(k) plans (also known as Uni-K, self-directed 401(k), self-administered 401(k) and individual 401(k) plans) have strict rules imposed upon the plans to not engage in IRS and DOL Prohibited Transactions.  These rules are specific in their intent and there are significant penalties associated with a plan participating in self-dealing and other types of specifically prohibited transactions. However, through…read more →

401(k) Investment Options

There are so many 401(k) investment options.  Yes, you heard that correctly, but you probably don’t believe me.  You may be in your traditional plan where your 401(k) investment options are going to be limited to the normal world of stocks, bonds and mutual funds.   But, is that the only investment options the IRS permits your 401(k) to have?  Are…read more →

Unrelated Debt Financed Income (UDFI)

Many people start going down the path of creating a self-directed IRA and have never heard of the term Unrelated Debt Financed Income (UDFI).  And, when they visited with the company that established their self-directed IRA, the concept of Unrelated Debt Financed Income may not have even come up.  I mean, if an IRA is not planning on financially leveraging an…read more →

Self-Directed 401K Plans — Don’t Trip

It’s a nice day, you are taking a nice casual walk and almost like someone playing a joke on you, you stumble while you are walking and almost fall flat on your face.  You look back, firmly believing that someone left something out to purposely make you look foolish, and what do you see?  Yes, that small crack in the…read more →