Is An E.I.N. Necessary vs. SSN# For IRA situation?
If a person has a Traditional IRA that they transfer from a Mutual Fund Company (All Cash Transfer) to a Self Directed IRA Custodian for the purpose of becoming a limited partner (one of many other limited partners) in a Limited Partnership, does that person’s IRA need to apply for an E.I.N. or can they simply continue to use their Social Security Number as the Identifying Number? The Partnership’s only business is to simply buy and sell traditional publicly traded US stocks with no UBTI above $1K limit or any other uncommon investments, income or proceeds anticipated.
Thank you for any responses.
Permalink Submitted by mk foss on Sat, 2013-02-09 02:45
You should never use your SSN for an investment owned by your IRA. The IRS will expect that it is your personal income and will send notices once there is enough income to make them notice. The custodian’s EIN is generally used for IRA investments. Even with a self directed IRA, a qualified custodian is necessary and that custodian should provide the EIN for the LP investment.
Permalink Submitted by Peter Hoffman on Thu, 2023-01-26 19:04
I invested in an LP in my Trad IRA at one custodian, then had to move it to a SD-IRA. Should I have a new EIN for the investment now or keep using the EIN assigned by the first custodian? The SD custodian doesn’t obtain EINs so I would obtain it myself.