IRA Self Dealing
Client will be owner of a c corp (which is an investment adviser) 95% owned by client personally and 5% owned by client’s IRA. IRA has about $100,000 in cash.
1, Client will receive a salary, but only a dividend or management fee if it helped to use the IRA.
2. Client will use the firm to advise his clients.
3. Client will be an emploee of Corporation.
I think this is clearly a prohibited transaction. But wanted to be sure I’m not missing something. Thanks
Permalink Submitted by Alan Spross on Mon, 2008-09-08 23:17
I agree with you. This approach is not being advocated by an approved self directed IRA custodian is it? If so, they may have more info on it. But if the client cooked up this idea himself, it would be best to shelve it.