ForumsIRAs and 401k plans Under Attack – Act Now!Congress Attack on IRA/401k Plans – Does the Proposal ban IRA LLC investments?

Forums IRAs and 401k plans Under Attack – Act Now! Congress Attack on IRA/401k Plans – Does the Proposal ban IRA LLC investments?

  • Congress Attack on IRA/401k Plans – Does the Proposal ban IRA LLC investments?

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  • George Blower

    Top SubjectPrivate: My Community Webinars,Cryptocurrency
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    George Blower

    George Blower

    Top SubjectPrivate: My Community Webinars,Cryptocurrency

    September 24, 2021 at 7:09 am

    QUESTION:

    Does the Proposal ban IRA LLC investments?

    RESPONSE:

    • The Proposal bans IRA investments in an entity in which the IRA owner is an officer/director (or has powers or responsibilities similar to officers or directors)
    • Even if you designate someone else to serve as the LLC manager, you may still run afoul of the proposed rule if you retain checkbook control (i.e. power similar to an officer).

    If the Proposal is passed, your options may be:

    • Rollover LLC from IRA to a Solo 401k (if eligible)
    • Transfer Manager role (including checkbook control) to another person
    • Dissolve LLC and transfer assets to Self-directed IRA
    • Sell IRA LLC investments and rollover cash proceeds to an IRA

     

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