All Forum Posts by: Jeffrey Dixon

You need to move your money to a Self-Directed account that allows investments outside of the stock market. Brokerage firms and banks typically do not allow this. 

Your Self-Directed account faced threats in 2021 from the Build Back Better Act. Now those threats are off the table.

Starting September 13, 2021, the House began its deliberation of the BBBA.

Section 138312 of that Act was set to disallow assets in IRAs if the IRA holder had to prove a certain minimum level of assets, or if an income level was required. It would have disallowed assets if the investor had to have completed a minimum level of education or obtained a specific license or credential. That would have eliminated private placement investing in IRAs.

Section 138314 said IRA owner cannot invest his or her IRA assets in a corporation, partnership, trust, or estate in which he or she has a 50 percent or greater interest. This provision would have put an end to the IRA-Owned LLC (also known as the "Checkbook IRA").

These two sections were removed before the bill was approved by House, which passed their version of the Bill November 24, 2021.

Keep in mind there are family members you cannot use your IRA funds with.

• you
• your spouse
• your parents and/or your adoptive parents
• your natural grandparents
• your natural children and/or your adopted children
• your stepchildren
• The spouse of your natural children
• your grandchildren
• Any fiduciary
• Any people providing services to your IRA

You have to be self-employed with your own business to be eligible for a Solo 401k Account. That business or any business you are an owner in cannot have other full time employees. You need to talk with a self-directed company to discuss the pros and cons. 

You set up an IRA, move funds from the 401k into the IRA. The LLC is formed later. The IRA buys the initial shares of the LLC and the IRA custodian moves the funds in the IRA to this LLC. You cannot move the funds in the 401k directly to the LLC. That is prohibited issue.

You can use a Solo k if you are self-employed with your own business. That business and any other business you are an owner of cannot have other full time employees. If you are not self-employed you can only move to an IRA. No IRA allows you to take a personal loan from it.

You can borrow money from a 401k. There is no IRA account you can borrow money from. If you are self-employed and have no full time employees with any business you own, you could open a Solo 401k. Since it is a 401k account, you can take a loan from it.

Roth's and Traditional IRAs have the same contribution limits. 

An IRA can use financing to buy real estate. It must be a non-recourse loan with no personal guarantees from you or other close family members. It is important to know that your IRA will be subject to a tax called Unrelated Debt Financed Income tax for as long as there is a loan on the property.

You can not earn a commission, or referral fee on the purchase and sale of the properties your IRA engages in. You cannot be the agent of record for no commission. You cannot use your property management company either. That is self-dealing and is not permitted.