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
Permalink Submitted by Bruce Steiner on Sun, 2011-02-13 00:02
The prohibited transaction rules are complicated. You may wish to consult with tax/estates counsel.
Permalink Submitted by Jose Puentes on Thu, 2011-02-24 13:13
Thank you.
Joe