Posts Tagged "prohibited transactions"

Using an IRA Trust Rather Than an IRA LLC?

The IRA LLC is the “go to” for the self-directed IRA investor who wishes to have checkbook control of their IRA funds.  However, though not well known, there is growing interest in using an IRA Trust rather than an IRA LLC.  Let’s get some basics out of the way right off the bat:  both structures permit checkbook control to the…read more →

Operating Agreement for Self-Directed IRA LLCs

I occasionally receive a question from a client on why is an operating agreement for self-directed IRA LLCs important. The genesis of the question usually rotates around when an IRA account owner is establishing the bank account for their IRA LLC, the bank will require that the individual provide the Federal TIN (Taxpayer Identification Number) and the approved articles for the…read more →

Self-Directed 401k Plans — When Life is Going Well?

This is a post I like to re-visit from time to time. I think one trait that can affect all of us is that when times are bad, boy are they bad.  And, when times are good, well, they are good.  That’s human nature to be swayed by polar opposites that may affect us. With the financial markets reaching unsurpassed highs, it…read more →

Self-Directed 401K — How About NO CUSTODIAN Requirement?!

Ah, you have done all your research on self-directed IRA plans, you learn about all the IRS regulations and Prohibited Transactions affecting both IRA and 401K plans, and you even are trying to determine whether you should establish a Roth IRA or possibly do a Roth IRA conversion with your current funds. Undoubtedly, in your research, you quickly learned that…read more →

Self-Directed IRAs — The Proverbial Dog?! (Part 3)

This is Part 3 of our “Home Alone” tribute and your “w00f woof” IRA or self-directed IRA.  You may remember from the first two posts that we outlined that while an IRA is never a bad thing, compared to a 401K it is like dog food….thus, woof woof.  And, similarly, the self-directed 401K clearly outpaces the self-directed IRA. That being said, what…read more →

IRA Accounts — Don’t Face IRS Scrutiny or Penalties

There is a saying that goes something like, “with great freedom comes great responsibility.”  This statement, when applied to IRAs in general, and self-directed IRAs in particular, couldn’t ring more true.  It may not be a question of “how to be self-directed”, but rather IF you should be self-directed. Why? The penalties associated with triggering an IRS Prohibited Transaction within…read more →

What Does the IRS Think of Investing in Real Estate?!

What DOES the IRS really think about people investing in real estate with their IRAs and 401Ks?

Self-Directed IRAs & 401Ks – Who the Heck are Disqualified Individuals?!

Wanna self-direct? Make sure you follow this IRS Prohibited Transaction and your life will be easier!