contaminated properties in an IRA

[Ryan Scritchlow]

I am looking at setting up a self directed ira to purchase a property that was and is still currently used as a salvage yard. My Ira will be converting it to a mini storage property. Given this has been a salvage yard for 65 plus years I know that there will be soil contamination from the previous owners. The current owners will not let me do a pahse II. My question is if purchased in an ira owned company and 20 years down the road the epa comes looking up the chain of title and finds my ira as an owner on it, can the epa hold me personaly liable for the soil contaimanation from the previous owner? I realize they can take every thing from that retirment account towards the clean up but can they take my other assests? IF they do and they ask me to pay for the clean up in escess of the value of that ira that owns this property wouldnt that be considered an illigal contrubtion to my retirement account and there for be a prohibited transastion?

what I am looking for is if your ira owns something and the epa comes knocking they can wipe out my retirement account but they shouldnt be able to make me pay more than the maximum allowable contrubtion limit to an ira in any given year. There for I have limited my potental libility to the value of that ira and at most 5k per year for the rest of my life if the max contrubtion limit for an ira is kept at 5k.

What are your thoughts on this?

Also Any sugggestions on a law firm that has someone who is sepcilized in both self directed iras and purchasing of contaminated properties or a firm who has one person for each?

Thanks
ryan