Self Directed 401k & IRA Solutions by Attorneys
PUNDEFF ADAMS
As mentioned previously, there is a procedure for applying for a prohibited transaction exemption. The application process can be time consuming, and there are certain types of transactions that have a better chance of approval than others. One of the types transactions involving an IRA which is sometimes granted involves a “disqualified party,” e.g. the [...]
Many people do not realize that they can begin taking distributions from their IRAs and qualified employer plan accounts without being subject to the 10% penalty on early withdrawals, even if they are younger than 59 ½ . Several exceptions exist to the rule against taking early distributions, but perhaps the most complicated and least [...]
In our practice, we occasionally see transactions structured by other financial planners attempting to circumnavigate the Prohibited Transaction Rules found in Internal Review Code sec. 4975, by using the thresholds found in the “Plan Asset Rule.” Dept. of Labor Regs. Sec. 2510.3-101. As is typical with most prohibited transactions, these arrangements often involve the IRA [...]
Pundeff Adams represents investors in applying for prohibited transaction exemptions. The following are verbatim excerpts from a tentative authorization by the Employee Benefits Security Administration of a prohibited transaction (published on the EBSA website), in which an IRA was allowed to sell property to the IRA owner:
A Self Directed IRA or 401(k) is intended for passive investments. If you are using, or considering using, your IRA or 401(k) for an investment that is not exactly passive, you may want to pause and read further. Examples of such “investments” include: purchasing, repairing, and flipping homes; and soliciting, making, and servicing loans (occasionally [...]
Many advisers concerning self directed retirement IRA and 401(k) investing fail to understand the breadth and complexity of the prohibited transaction limitations in Internal Revenue Code §4975(c). In particular, they focus on the objective numerical limitations while ignoring the subjective “catch-all” limitations of that section. In particular, IRC §4975(c)(1)(D) & (E), which prohibit a disqualified [...]
http://www.foxbusiness.com/personal-finance/2013/04/10/dont-let-self-directed-ira-fee-to-death/
Boy do I get a lot of blowback every time I share my findings about why the government has declared ROBS illegal! Why is there not a specific government
http://www.examiner.com/article/401k-plans-and-ira-eyed-to-alleviate-fiscal-cliff
The ever expanding debate on averting financial consequences in early 2013 has refocused attention on concerns that the coveted 401 k plan and IRAs, long consid
David and Michelle Haisley from Fort Wayne, Indiana, weren’t happy with the performance of their retirement funds, so they made another investment -- a foreclosed home for ,000.
Individual retirement accounts and 401(k)'s are being used increasingly to invest in start-ups or commodities, but such maneuvers can leave users penniless in retirement.