Self Directed IRA LLC cryptocurrency exchange regulations
I’ve been told that I must not use a personal crypto exchange account for a Self Directed IRA LLC. Instead to open a new exchange account in the name of my IRA LLC. The problem is that the exchange needed is Bitget crypto exchange that operates for USA citizens with a VPN, which does not contain or have access to the name of my IRA LLC. I can register for an IRS EIN Verification Letter, but it is my understanding that the IRS EIN Verification Letter is not submitted to the Bitget crypto exchange when you are using VPN to access Bitget crypto exchange. Please provide direction about how to go forward to satisfy IRS and State of Oregon scrutiny? IRS rules state: Generally, if an IRA owner or his or her beneficiaries engage in a prohibited transaction in connection with an IRA account at any time during the year, the account stops being an IRA as of the first day of that year. The effect of this is the account is treated as distributing all its assets to the IRA owner at their fair market values on the first day of the year. If the total of those values is more than the basis in the IRA, the IRA owner will have a taxable gain that is includible in his or her income. Would use of a VPN accessed Bitget cryptocurrency without my IRA LLC EIN Verification Letter acknowledged by the VPN or Bitget cryptocurrency exchange be a prohibited IRS transaction?
Submitted by Randall Martin on Fri, 2023-08-11 04:42