Articles
Understanding the Prohibited Transaction Rules for Self-Directed IRAs (Webinar)
Webinar Slides: Understanding the Prohibited Transaction Rules for SDIRAs By Mat Sorensen
Radio Ad Warning: Self-Directed IRA Investors Should Go For The Gold With Caution
I hear a radio ad every week that says, "there is a loophole that allows you to use your IRA to buy physical gold "tax-free" and that you can EVEN store this gold in your home." If these radio ads were on T.V., there'd probably be an image of Scrooge McDuck swimming...
Prohibited Transaction Case Lesson: The Substance of the Transaction Matters
A prohibited transaction case from 2015 taught an important lesson for self-directed IRA investors. That lesson is that the substance of the actual transaction matters and that you cannot avoid a prohibited transaction by creating entities or other artificial...
SEC Rule 506 in 2016: Advertising and Raising Money From Unaccredited Investors Explained
In 2012, the JOBS Act amended the rules for private placement offerings (aka “PPMs”) to allow companies to advertise and solicit their offerings to prospective investors. Under prior law, a PPM could not be marketed or solicited to people whom the offeror did not have...
2015 Tax Reporting for Your Self-Directed IRA
Self-Directed IRA investors should be aware of the following IRA tax reporting responsibilities. Some of these items are completed by your custodian and some of them are the IRA owner’s sole responsibility. Here’s a quick summary of what should be reported to the IRS...
What Not To Do With Your IRA/LLC or Checkbook Control IRA: Niemann v. Commissioner
The recent case of Niemann v. Commissioner involves a successful real estate investor who unknowingly used his self-directed IRA owned LLC (aka, checkbook control IRA) in a way that caused a prohibited transaction under IRC § 4975. While the Tax Court's holding and...
Self-Directed IRAs, Real Estate Crowdfunding, and UBIT Tax Explained
The most common asset class for self-directed IRA accounts is real estate. Real estate investments for self-directed IRAs come in various forms from simple single-family rentals owned 100% by the IRA to LLC or LP investment partnerships with multiple investors in...
Correcting Your IRA’s RMD Failures and Avoiding the Penalty
If you failed to take required minimum distributions (RMD's) from your IRA, then you are subject to a 50% penalty. The penalty is 50% on the amount you should have distributed from your IRA to yourself. It's a steep penalty for simply failing to pay yourself from your...
2015 Solo 401(k) Contribution Deadlines and Mechanics
As 2015 comes to an end, it is critical that Solo 401(k) owners make year-end retirement plans. There are three important deadlines you must know if you have a solo 401(k) or if you plan to set one up still in 2015. A solo 401(k) is a retirement plan for small...
Fact and Fiction for IRA RMDs
If you are age 70 1/2 or older and if you have a traditional IRA (or SEP or SIMPLE IRA or 401k), you must take your 2015 required minimum distributions (“RMD”) by December 31, 2015. In short, the RMD rules require you to distribute a portion of funds from your...
