All Forum Posts by: Jaime Raskulinecz

@Dan Fisher I agree with the other responders that most don't charge for incoming funds. You can probably ask your current provider to see if they will waive the fees.

Be very careful about checkbook control as there are so many ways that a prohibited transaction can happen. I have seen many people who thought they knew all the rules do something that was prohibited.

I always suggest, if going that route, you have an experienced ERISA attorney set up the operating agreement and have them available for consultation for any transactions.

Jaime

@Steve Lovelien I think I may have just answered your question in another forum.

Please feel free to reach out if I, or my staff, can answer any other questions.

Jaime

@Steven Ojeda I'm sure everyone has an opinion on providers based on their experience with them. It really depends on what you're looking for from a company.

I think it's going to be difficult to find someone who can competently handle self-directed IRAs and also other types of accounts. This part of the retirement industry tends to be quite specialized as traditional custodians don't want to handle this business for a variety of reasons.

Please be cautious about single member LLCs as they do allow more flexibility; however, unless you are extremely familiar with the rules on self-direction, you can easily do a prohibited transaction and put the tax advantaged status of your account at risk.

For instance, did you know that if the LLC applies for credit (even a credit card) and you sign off on the application as the manager of the LLC this is a prohibited transaction?

If you go that route, be sure you work with an ERISA attorney who can advise and guide you through the process and on an ongoing basis to be sure you follow the rules.

Best of luck finding a provider who works for you.

Jaime

@Jeremy Paschedag I have heard of exceptions granted by the IRS for an IRA owner to purchase a property from their IRA.

You may also take portions of the property each year. However, this entails an appraisal each year as well as a deed change. And you still may not use the property personally until it is fully distributed.

There are always other options.

Jaime

@Tanner Gish Since there has been so much discussion on UBIT I won't rehash it. However, there has been a couple of remarks that state your IRA must own the entire property if doing a real estate deal. This is NOT true. You, and other disqualified persons, may partner with your IRA as long as certain rules are followed.

The issue I see in your initial question is that your IRA may NOT lend money to your personally owned LLC. This is a prohibited transaction.

In regards to the ROBS strategy, this is also very complicated and not looked on particularly kindly by the IRS. I always suggest a good ERISA attorney to consult and set these up as there are issues that should be addressed at the outset as well as ongoing issues to remain in compliance. It is also very expensive to set this up correctly.

Jaime

@Brian Knier You can't do the deal the way you outlined it. However, you and your IRA may jointly own a property. However, if you don't have any personal funds to contribute to the deal it can't be done.

@Valerie Couch There are a few lenders who do this as @Dmitriy Fomichenko said.

That being said, the structure of the purchase would be a bit different than you stated. The IRA and the IRA owner would have to be partnered in the investment to make it work.

It can seem complicated; however, a chat with someone familiar with the regulations could easily clear it up.

Sorry for the previous garbled response.

@Valerie Couch There are a few lenders who do this as @Dmitriy Fomichenko said.

That being said, the structure of the purchase would be a bit different than you stated. The IRA and the IRA owner would have to be partnered in the investment to make it work.

@Sam Prakash There are ways to partner with your self-directed IRA and yourself personally; however, it is a bit more complicated than using the IRA for a deposit and ancillary costs.

You and your IRA must invest together (simultaneously) into the property. The percentages of ownership must remain constant and all income and expenses divided by these percentages.

In addition, you must personally be able to do the deal without using IRA funds in order to have the transaction NOT be considered prohibited.

There is a lot of information out there in order to get everything you need to protect the tax advantaged status of your account. Make sure you know it, or get a professional who does.

Good luck.

Jaime Raskulinecz

@Gregory Bargiel I am always impressed when I see someone of your age group taking advantage of Roth IRAs. Congratulations on getting a head start!

If, by your post, you meant using the IRA to purchase the multi-family property and then live in it this is not allowable according to the IRS rules on self-directed IRAs.

Please feel free to contact one of our staff members, or take a look at the information on our website, to get more information on this topic.

Good luck!

Jaime