If the proposed legislation is enacted, you will no longer be able to purchase any of the above investment types in your IRA. Further, you will be required to dispose of any such investments that you currently hold in your IRA by December 31, 2023. This could result in significant and previously unforeseen financial and tax consequences, including taxes and penalties associated with any assets that could not be sold and must be distributed from the IRA.
Make your voice be heard. Contact your elected officials in the United States House of Representatives and Senate, and tell them:
You oppose limitations on IRA investment choice (Sections 138312 and 138314 of the House Reconciliation Bill). These under-the-radar provisions have never been publicly vetted and will have unintended and adverse impacts on you and millions of other Americans who wish to save for a secure retirement through Main Street investments. Specifically, the legislation:
-Negatively impacts your ability to save for a secure retirement by limiting your choice and ability to diversify your retirement savings outside of the stock market.
-Will cause you significant negative financial consequences by forcing you to sell existing IRA investments at a depressed price by a publicized certain date, and also cause significant negative tax consequences (including early distribution penalties) by forcing you to distribute from your IRA any investments that you are unable to sell.
You are also concerned that the legislation negatively impacts the ability of small businesses that employ everyday Americans to obtain the funding necessary to operate and grow their business and create jobs. The proposed legislation eliminates the ability of suitable investors to participate in private capital-raising transactions through their IRAs, a source of funding on which many of these small businesses rely.
Thank you for posting. Seems like you may have missed including some details about the specific prohibitions that you intended to include. Accredited investments like syndications and private RE or note funds will be prohibited.
The main thing that people need to know is that your voice needs to be heard. We are making progress, reaching key legislators, and they see the misguided nature of this proposal. We need to keep the pressure on with a volume of outreach.
Here is a post with more details and resources to contact your legislators.
@Scott George great point and great post
@Scott George reaching out via email, phone, letter, social media is key! Often times the Congressman is not acutely aware of these lesser known provisions unless they are on Ways & Means