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Updated over 5 years ago, 07/16/2019

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1,304
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525
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Mark S.
Pro Member
  • Rental Property Investor
  • Kentucky
525
Votes |
1,304
Posts

Leaving Funds to be ”Accrued” w Operator/Syndicator SD-Roth IRA

Mark S.
Pro Member
  • Rental Property Investor
  • Kentucky
Posted

I own a couple of cacao parcels as part of an agricultural opportunity/syndication inside my Self-Directed Roth IRA. The SD Roth IRA owns the physical parcels (not a fund), but turnkey managed, syndication style with a split w operator. The annual report just came out and, as expected, initial returns/cashflows are on the smaller side.

Investors are given the option to take the proceeds (in my case, funds disbursed into my SD Roth IRA) and pay the corresponding wiring fees or to let the funds accrue with the sponsor until the payout is larger and the wire fee is more justifiable and reasonable to pay based on a larger amount disbursed.

My question is whether or not there are any negative or adverse tax consequences to letting the funds accrue with the syndicator/operator. I’m assuming the answer is “no,” because I’m not taking possession of the funds personally or anything like that, but wanted to see if anyone on here can confirm. Thanks.

  • Mark S.
  • Loading replies...