Roth IRA LLC | Traditional IRA LLC
Before continuing
to setup an IRA with check book control, which entails either forming a new LLC
or Corporation, first familiarize yourself with the IRA rules. For instance, as
a court case from 2012 titled “Taproot Administrative Services v. Commissioner,
109 AFTR 2d 2012-1446, U.S. Court of
Appeals for the 9th Circuit, 3/21/2012” confirms, an IRA may not be
a shareholder in an S corporation.
This court case involved a taxpayer who formed a corporation named Taproot that elected to be treated as an S-Corporation. Subsequently, his Roth IRA purchased stock in Taproot. Because Taproot was setup as a S-Corporation, a Roth IRA or any other type or IRA is considered an ineligible shareholder.
If you are adamant
about investing your retirement funds in an S-Corporation, you may want to
consider opening a since
it’s considered a trust and thus not restricted from being a shareholder of an
S-Corporation like IRAs.
To learn more about the Solo 401k plan rules, including how to invest in real estate, visit:
http://www.mysolo401k.net or call
800-489-7571
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