Roth 401k/IRA
Can a company doing business as an LLC place its shares or units in a Roth 401k or IRA as part of the member’s contribution?
If yes, is there any appropriate method of valuing the units/shares other than a designated valuation by the partners (members and/or managing members)?
I’ve been researching this for sometime and can’t seem to find a direct answer. Any direction and/or help from anyone would be greatly appreciated.
Permalink Submitted by Alan Spross on Mon, 2008-07-07 18:34
All regular contributions must be made in cash.
If the IRA later purchased shares of the LLC, the prohibited transaction rules would have to be carefully analyzed, including the definition of disqualified persons. See the following:
http://www.aba.com/NR/rdonlyres/D8BE9599-E5ED-4994-91CB-BF8B23A2AE7C/429…