promissory note in an IRA?
I have a client who is now an ex employee. he was participating in a ESOP plan. plan is going to pay out on a 5 year pay out to this ex employee. question is could an IRA hold a promissory note so these payouts can happen when they happen? what are client’s option as ex employee?
Permalink Submitted by mk foss on Thu, 2009-07-02 17:05
There is no specific prohibition in an IRA holding a promissory note. He would need to find a custodian that would manage an IRA with an asset of that type. A note would be a problem if the debtor was the IRA owner or a family member, but funds owed by a qualified retirement plan should be fine.
Permalink Submitted by Jim MacArthur on Tue, 2009-07-07 16:31
A self directed ira custodian can hold promissory notes, with some rules. Here is a list of custodians that allow real estate, real estate notes, and promissory notes:
[url]http://www.thehardmoneypros.com/self_directed_ira_custodians.shtm%5B/url%5D