Archive for the ‘IRA Prohibited Transactions’ Category

Top Self-Directed IRA Provider – IRA Financial Group – Announces New Self-Directed IRA Prohibited Transaction Review Service

July 6th, 2017

New self-directed IRA prohibited transaction review service will be offered to all IRA Financial Group clients IRA Financial Group, the leading provider of “checkbook control” self-directed IRA and solo 401(k) Plans, announces the introduction of a self-directed IRA prohibited transaction review service. IRA Financial Group’s new self-directed IRA prohibited transaction review service will be available […]

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Self-Directed IRA Prohibited Transactions Rules – Most Popular Subject for IRA Financial Group Clients in 2016

January 11th, 2017

 IRA Financial Group clients most interested in learning about self-directed IRA Prohibited transaction rules in 2016 IRA Financial Group, the leading provider of “checkbook control” self-directed IRA solutions, announces that the IRS prohibited transaction rules was the most popular subject for RA Financial Group clients in 2016. The Internal Revenue Code does not describe what […]

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Kellerman Case Shows Why Not to Mix Personal and Retirement Funds to Invest

August 31st, 2016

IN RE: KELLERMAN, Cite as 115 AFTR 2d 2015-1944 (531 B.R. 219), Code Sec(s) 408; 4975, (Bktcy Ct AR), 05/26/2015 Please click here to read the case summary. The Kellerman case involved a construction company owner and wife/LLC co-owners (the Kellermans) who were denied a claim for bankruptcy estate exemption for Mr. Kellerman’s Self-Directed IRA. […]

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WHAT TYPES OF INVESTMENTS ARE NOT PERMITTED USING A SELF-DIRECTED IRA?

August 19th, 2015

The Internal Revenue Code does not describe what a Self Directed IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits Disqualified Persons from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of retirement savings […]

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IRA Financial Group Introduces IRS Prohibited Transaction Consultation Services for All Self-Directed IRA Clients

November 22nd, 2013

Self Directed IRA investors can now receive expert advice on the IRA prohibited transaction rules regarding the IRS rules for making investments using retirement funds The IRA Financial Group, the leading facilitator of self-directed IRAs with checkbook control has launched a new tax consultation services called “Self-Directed & IRS Protected” aimed specifically for the self-directed […]

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New Tax Court Case Confirms Validity of “Checkbook Control” Self-Directed IRA LLC Structure

November 8th, 2013

TC Memo 2013-245 confirms legality of using self-directed IRA LLC to make investments without triggering an IRS prohibited transaction The Tax Court in T.L. Ellis, TC Memo. 2013-245, Dec. 59,674(M) recently held that establishing a special purpose limited liability company (“LLC”) to make an investment did not trigger a prohibited transaction as a newly established […]

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What are the penalties if I engage in a “prohibited transaction” or a “disqualified transaction”?

October 12th, 2013

Your investment may be disallowed under Internal Revenue Code Section 408 or result in a “Prohibited Transaction” under Internal Revenue Code Section 4975 and could result in the immediate disqualification of your IRA. Although IRAs are generally not ERISA plans, the Department of Labor has jurisdiction over these plans for purposes of the prohibited transaction […]

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Penalties for Engaging in an IRA Prohibited Transaction with a Self-Directed IRA LLC

August 28th, 2013

In general, the penalty under Internal Revenue Code Section 4975 generally starts out at 15% for most type of retirement plans; however, the penalty is harsher for self-directed IRAs. IRA Holder or IRA Beneficiary Engages in a Prohibited Transaction Under IRC 4975 When a self-directed IRA or Roth IRA holder (owner) or beneficiary is involved […]

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Using a Self-Directed Roth IRA to Purchase Real Estate

August 26th, 2013

Most people mistakenly believe that their Roth IRA must be invested in bank CDs, the stock market, or mutual funds. Few Investors realize that the IRS has always permitted real estate to be held inside IRA retirement accounts. Investments in real estate with a Self-Directed Roth IRA LLC are fully permissible under the Employee Retirement […]

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The Self-Directed IRA Disqualified Person Rules

March 1st, 2012

When making investing using retirement funds, it is important to understand the prohibited transaction rules. The IRS and the Internal Revenue Code do not describe what a Self Directed IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits Disqualified Persons from engaging in certain type of […]

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