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