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Updated almost 6 years ago on . Most recent reply

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Bob Malecki#5 Tax Liens & Mortgage Notes Contributor
  • Investor
  • Kingston, WA
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Can a spouse's SDIRA substitute into a IRA owned LLC?

Bob Malecki#5 Tax Liens & Mortgage Notes Contributor
  • Investor
  • Kingston, WA
Posted

We have a checkbook controlled SDIRA LLC with membership as follows:

25% My Roth IRA

25% My wife's Roth IRA

50% My cousin's wife Marilyn's traditional IRA

In 2019 Marilyn has to start taking required minimum distributions from her IRA, and all of her IRA funds are invested in our LLC.

Both my and my wife's IRAs could take corresponding distributions from the LLC to keep the above ratios, but none of us want to reduce our capital or have to sell assets to fund Marilyn's RMD withdrawals.

Marilyn's husband, my cousin has a Roth and he's willing to essentially "swap out" her IRAs capital account in the LLC with his IRA.

Sooooo, does anyone like @Bryan Hancock or @Dmitriy Fomichenko have any thoughts as to weather this would be compliant with IRS regs, or any other creative ideas on how to have Marilyn get her capital for RMDs without my spouse and my IRAs having to withdraw? 

Thanks in advance

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