Articles
3 KEY CONTRACT TERMS BUSINESS OWNERS & INVESTORS TAKE FOR GRANTED
Many business owners and investors are entering into contracts for investments, equipment, services, and other business needs. Many of these contracts contain "boilerplate" clauses at the end of the contract that are often overlooked and are taken for granted. This...
INHERITING AN IRA: STRETCH OPTIONS AND SEE THROUGH TRUSTS
When an owner of a retirement account passes away, their retirement account is passed on to the heirs of that account as they are designated on the account owner’s beneficiary designation form. The taxation and distribution rules are different depending on whether the...
ROTH IRA DISTRIBUTIONS BEFORE AGE 59 ½
Every Roth IRA account owner knows that the main benefit of the Roth IRA is that there are no taxes due on Roth IRA withdrawals taken after the account owner is 59 ½. However, what taxes or penalties apply to distributions taken before the Roth IRA owner reaches 59 ½?...
IRA Owner Wins Appeal of Prohibited Transaction Ruling: What Can Self Directed IRA Investors Learn?
In Daley v. Mostoller, the U.S. Court of Appeals for the Sixth Circuit ruled that an IRA client account agreement which contains a “cross collateralization” or lien against the personal debts of the IRA owner does not constitute a prohibited transaction unless there...
Self-Directed IRA Prohibited Transaction Costs Taxpayers Over $250K
The latest IRA prohibited transaction case is called Peek & Fleck v. Commissioner, U.S. Tax Court 140 T.C. No. 12 (March 8, 2013) and concerns two tax payers who used self directed IRAs to establish and fund a newly formed corporation which corporation purchased a...
Do I Need Foreign Corporation Registration?
Many business owners and investors doing business in multiple states often ask the question of whether their company, that is set up in one state needs to be registered into the other state(s) where they are doing business. This registration from your state of...
Performing Due Diligence Before You Invest & The Due Diligence Top 10 List
Before you invest your hard earned savings or your self directed IRA into a “non-traditional” business or real estate investment of another you need to ask some hard questions to the person or business receiving your money. Here are some tips to keep you out of legal...
Obama Budget Includes Wish to Limit Retirement Account Size to $3 Million
Many clients have e-mailed me about President Obama's new budget proposal which seeks to limit the collective size of an individuals retirement accounts (including IRAs and 401(k)s) to $3 Million dollars. This measure does not contain specifics but does indicate that...
What Can My Self Directed Retirement Account Invest Into and The Prohibited Transaction Rule Basics
A self-directed retirement account, in short, is a retirement account administered by a custodian who allows your retirement account to invest into any investment allowed by law. The law applicable to retirement accounts allows retirement accounts (such as IRAs or...
The Not So Well Known Benefits of Roth IRAs
Many investors and financial professionals are familiar with the primary benefits of a Roth IRA: that after you pay taxes on the money going into the Roth IRA that the plans investments grow tax free and come out tax free. That being said, there are so many more...
