Your IRA-Owned LLC Needs To File a BOI in 2024

[Kaaren Hall]

Important 2024 Update for IRA-Owned LLC Investors: New Reporting Requirements Under the Corporate Transparency Act

Attention Real Estate Investors with IRA-Owned LLCs! As of January 1, 2024, a significant change is coming your way due to the Corporate Transparency Act (CTA). This law, initiated by the Department of Treasury and Financial Crimes Enforcement Network (FinCEN), requires all U.S. formed or registered LLCs, including those owned by IRAs, to submit a Beneficial Ownership Report. This is a crucial update for our community, especially if you're using an IRA-owned LLC to fund your real estate investments.

However, there's a silver lining for Solo 401(k) holders: this new rule doesn't apply to your investment vehicle.

Why is the CTA Being Implemented?

The primary goal of the CTA is to combat under-the-radar financial crimes like money laundering. In the context of IRA-owned LLCs, the IRA holder is considered the beneficial owner. You'll need to provide detailed personal information including your legal name, birth date, address, and ID documents (think passports or driver's licenses). Be warned: failing to comply could lead to hefty fines or even imprisonment. Remember, any costs for filing this report are covered by your IRA.

How to Comply with the New Requirements

Ready to file? You'll need to submit your beneficial ownership details electronically via FinCEN's secure platform. This development underscores an increasing regulatory scrutiny on IRA-related entities, a contrast to Solo 401(k)s which remain unaffected by this change. For more details, [click here].

Before making any moves, it’s wise to consult with a financial or legal expert. For those of you looking for specialized advice on self-directed retirement plans.

[Richard Anderson]

And just to be clear, you can't file until January 1st. Here is the specific FinCEN site. It provides a wealth of information. 

https://www.fincen.gov/boi