Investing in a Business
If a client wanted to invest in a non-publically traded business is there any way that it could be set up as an IRA?
If a client wanted to invest in a non-publically traded business is there any way that it could be set up as an IRA?
Permalink Submitted by Alan - IRA critic on Thu, 2024-06-20 23:45
A self directed IRA custodian is required for the IRA to purchase shares in the non publicly traded business.
If the client wants to start their own business with IRA funds, there is a complex procedure known as “ROBs” (rollovers as business start ups) which requires the client to start a C Corp for which the IRA or 401k funds are used to purchase shares. This procedure is complex, risky, and has been an IRS compliance target.