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 [...]
Example of an Expedited Exemption of a Prohibited Transaction
June 14, 2011 By
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:
Four Reasons to Choose a Solo-K (or Other Self-Directed 401K) Rather Than an IRA
October 18, 2010 By
Solo-Ks and other Self Directed 401(k)s, like self directed IRAs can be structured for investing in non-traditional assets like real estate, and allow Roth accounts. However, these plans enjoy several advantages for the self-directed retirement plan investor. First though, these plans are limited by one big disadvantage: These plans are available only to persons involved [...]
