self dealing IRA'S - Posted by shawn

Posted by shawn on July 29, 2001 at 02:59:21:

thanks for the responses but my question, is 5,000 enough? I’m thinking that the answer is “absolutely it is”. Just need to make sure after all it’s not my money and before I risk someone elses, I want to have a good idea about what will happen. Thanks again and I meant to write self directed not self dealing which of course is a big no, no, appreciate the attention to detail.

self dealing IRA’S - Posted by shawn

Posted by shawn on July 28, 2001 at 02:46:47:

does anyone know if it’s possible to self direct an IRA with a cash value of about $5,000.00. I have been informed that self directed IRA’S should have a value of about $20,000.00 to direct or the fee’s associated with self dealing are to high and will eat up the value of the IRA.

Re: self dealing IRA’S - Posted by Bud Branstetter

Posted by Bud Branstetter on July 28, 2001 at 20:40:42:

Your title was self dealing but the question was self directed. Selfdealing is a NO NO. If you profit personally then you get penalized. If the profits go back to the IRA no foul. Yes, there are the hybrids like David alludes to but the cost to set it up would not be worth while. Even at 5K you have trouble doing many types of deals. A L/O, or subject to could be done with little or no money. The annual fees due many custodians make only high return investments economical. The typical mutual fund or fixed return investment have just to much overhead.

Absolutely it is… - Posted by David Alexander

Posted by David Alexander on July 28, 2001 at 04:32:06:

by a house, a Mh, a note, have you IRA set up and LLC and partner on a deal of some sort… etc, etc.

Cost is relative to the investment gain. If your only making 7-8% then it aint worth it, but if your getting returns of 25% North… way north… then you be the judge.

David Alexander

Re: Absolutely it is… - Posted by Tarheel T

Posted by Tarheel T on July 28, 2001 at 16:15:06:

Why would an LLC be necessary?
How about having your IRA buy an option and then selling the option to someone else or to yourself?
In the case of selling said option to yourself, I can see how that would be self-dealing, but can it be done?

Tracy Thompson

Re: Absolutely it is… - Posted by David Alexander

Posted by David Alexander on July 28, 2001 at 16:23:30:

There are ways to get access to IRA monies without self dealing by using an LLC.

Check out

What setting up an LLC that your IRA owns does is let you have control of the money for investing.

It also helps you avoid UBI tax(unrelated business income).

If you do alot of buying and selling inside the IRA you may subject to that if your not careful.

So instead the IRA just owns units of the LLC. Which also allows the LLC to write the checks directly, without doing a direction of funds everytime.

David Alexander