Articles
Roth IRAs: Other Perks on Top of Tax-Free Growth
Many investors and financial professionals are familiar with the primary benefits of a Roth IRA: that the plans investments grow tax-free and come out tax-free. But if tax-free investing isn't enough to get you excited, rest assured, there are more benefits to the...
Asset Protection for Your Self Directed IRA
Many self directed IRA investors misunderstand or are unaware of the protections afforded to their IRA (Roth or traditional) as it relates to creditors and judgments. This article seeks to address the key areas of the law that every self directed IRA investor should...
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...
