Question: Can I cause my self-directed IRA to invest in any type of asset I desire?
Answer: No. Section 408(a)(3) of the Internal Revenue Code says that an IRA may not invest in life insurance contracts (life insurance). The IRS also restriction investments in “collectibles.” Here is what IRS Publication 590 [...]
Ann Siford, Manager of Professional Network at Equity Trust Company writes: “A self-directed IRA allows investors to directly manage their retirement portfolio, diversifying beyond the traditional mutual funds, stocks and bonds to include assets such as real estate, promissory notes, tax liens, private placements and oil/gas. . . . IRS Rules You Need to Know.
Forbes: “More Americans will be handing down IRAs to their kids. A new decision suggests it might be a creditor proof inheritance. But nothing is certain yet. In what estate planners and bankruptcy lawyers are saying could be a significant case, a federal bankruptcy judge in Minnesota has allowed a bankrupt woman to [...]
Forbes: “If you miss the 60-day rollover deadline, will the IRS be sympathetic? You can move wealth from a company pension plan, a 401(k) or traditional Individual Retirement Account into a traditional IRA without owing any taxes in what’s known as a ‘rollover.’ . . . a surprising number of taxpayers make mistakes [...]
All IRA owners who have made self-directed investments into an IRA LLC and anybody considering do so should read Jeff Nabers’ article called “What is the Plan Asset Rule?“ This rule turns assets owned by an entity into assets that are deemed to be assets of the IRA with the consequence that any [...]
Texas attorney Noel C. Ice wrote a very detailed law review type article called “Under What Circumstances Can an IRA Invest in a Business Owned in Part by the IRA Owner and Members of The IRA Owner’s Family?” If you want to get into the nuts and bolts of the law, this article is for [...]