Posted by warren chatmon on December 04, 2004 at 14:30:37:
Are the other custodians other than Guidant able to provide the set up for the LLC conduit?If not do you know of firms specializing in this approach?
Roll IRA into LLC? - Posted by Christine616
Posted by Christine616 on September 08, 2004 at 05:24:12:
Does anyone know, can a person roll their IRA into an LLC without the tax penalties?
Re: Roll IRA into LLC? - Posted by John Merchant
Posted by John Merchant on September 08, 2004 at 10:54:36:
Your IRA can certainly BUY LLC shares(units), but this needs to be done right…e.g. NOT from you, or your already owned LLC, but in a new LLC that you don’t currently own.
Suggest you might want to talk to one of the few Self Directed IRA Custodian Co’s who really specialize in this. And this won’t cost you anything except your phone call & time.
Some of the largest of the SDIRA custodian co’s. are MidOhio (or its subsidiary Equity Trust), or Pensco, or Entrust, all of which have big websites and whose customer relations depts. can and will gladly tell you all about how to use their services.
This is not, by the way, a “rollover” as that is a move from some other retirement plan into an IRA, and that’s not what you asked…of course lots of IRA $$$ does come from other pension plans, via a rollover, and jillions of $$$ have come from 401k, 403B, etc., plans. That’s how come there is so much money in IRAs these days.
On your use of the new LLC, in your new SDIRA, as John H has said, you’d be wise to talk to a professional who knows and understands SDIRA investing. There are some rules you need to know and understand, such as the rules about your also owning shares, personlly, in such an LLC or partnership.
And I know John H & I would agree on the fact, that unfortunately most lawyers & accountants do NOT really work in, on, or understand this field.
If you do call and talk to one of the SDIRA custodian companies, you might in fact inquire as to some pro in your geographic area who DOES work with them and understand their rules.
Also, I’d recommend you go to your closest IRS Service office and pick up a current Pub.590 IRA rules booklet.
Or you can go to the IRS site and find and print this, but it’s LOTS of pp. and will gobble up your ink and paper…as I recall, it’s now about 100pp. !
Good move, and good luck.
John Merchant,JD,EMS
Re: Roll IRA into LLC? - Posted by JOHN K HASLACH, CPA, MST
Posted by JOHN K HASLACH, CPA, MST on September 08, 2004 at 08:33:51:
An IRA can invest in an LLC, but there are issues which you should discuss with a qualified professional.
Re: Roll IRA into LLC? - Posted by Warren Chatmon
Posted by Warren Chatmon on December 04, 2004 at 13:45:45:
Are you aware of Guidant Financial?
Re: Roll IRA into LLC? - Posted by JOHN K HASLACH, CPA, MST
Posted by JOHN K HASLACH, CPA, MST on September 08, 2004 at 16:31:08:
I couldn’t agree with John M more about most attorneys and accountants do not have experience with this area. Make sure the professional you work with has experience.
Re: Roll IRA into LLC? - Posted by Christine616
Posted by Christine616 on September 08, 2004 at 08:41:10:
OK, thank you. We plan to contact a RE attorney soon.
Re: Roll IRA into LLC? - Posted by John Merchant
Posted by John Merchant on December 04, 2004 at 13:52:54:
Yes, but I’m underwhelmed because of their cost structure…pricey and not worth the cost IMHO.
The other SDIRA custodians, such as Eq.Trust, Pensco, Entrust far less costly, but just as (and maybe more) useful for buying your own selected RE, notes, etc.