Investing in a business venture – Part IRA part Cash

I am investing in a business venture as a 33% shareholder using my ROTH IRA. I was assigned as an officer of the company (President) however I do not receive a salary.

I know that my profits can be returned into my ROTH IRA tax free, correct?

What if I decide to instead invest into the 33% of the company using 50% funds from my IRA and 50% using my personal cash.

My goal is to receive some of the profits as income through the personal/cash investment, pay my taxes accordingly on this portion and then have the other half safe and tax free in my IRA for other investments, etc. Is this okay/legal?

If so can you recommend an advisor that can structure the deal for me.

Thanking you in advance for your help.

Joe Puentes



The prohibited transaction rules are complicated. You may wish to consult with tax/estates counsel.



Thank you.

Joe



Add new comment

Log in or register to post comments