Took longer than 60 days to rollover your IRA? A new court case could help.

In 2001 Congress enacted a law allowing the IRS to waive the 60 day IRA rollover requirement, “where the failure to waive such requirement would be against equity or good conscience, including casualty, disaster, or other events beyond the reasonable control of the individual subject to such requirement.” The way the waiver worked in the past Read more about Took longer than 60 days to rollover your IRA? A new court case could help.[…]

Tax time is investment time for your self directed IRA or self directed 401k

Yesterday I had a client call me up and explain that she was frustrated as her self directed account was only earning 1.2% in interest.  I suggested she look at doing hard money loans but she was a bit nervous about the idea. That got me to thinking about what would be a beginner’s investment Read more about Tax time is investment time for your self directed IRA or self directed 401k[…]

Who really owns your IRA LLC? Your self directed IRA?

Tons of people have set up IRA LLCs. The theory is that since they are the beneficiaries of the IRA they are indirectly the owners of the IRA LLC and the assets inside of the LLC.  There is another belief that the custodian or trustee of the IRA can’t take any action in regards to Read more about Who really owns your IRA LLC? Your self directed IRA?[…]

Retirement benefits cut 60% by the state

So you put in your 30 years with the government.  Yeah, it was a rough time, but now that you have a guaranteed retirement it sure looks like it was worth it.  Big question though, is that retirement income really guaranteed?  Probably not. Just today California’s retirement fund, Calpers, issued a statement saying it was Read more about Retirement benefits cut 60% by the state[…]

Can the IRS Levy (IRS talk for take away or garnish) your retirement plan?

When you owe the IRS money they can pretty much come after any asset that you own.  That includes your retirement plan assets. As verification of that fact, the IRS issued a new memo for Revenue Officers (IRS collectors) reminding the collection agents of the IRS’s ability to take over your retirement plan. In the Read more about Can the IRS Levy (IRS talk for take away or garnish) your retirement plan?[…]

Witholding Taxes

Witholding Taxes and rollovers from retirement plans

When you request a distribution from your qualified retirement plan such as a profit sharing plan or 401k, the tax code requires that your plan withhold 20% in taxes.  This really messes things up if you planned on rolling over the money since now you have to come out of pocket for the withheld 20%. Read more about Witholding Taxes and rollovers from retirement plans[…]

401Ks Protected

Are 401ks protected in bankruptcy?

Can your 401k be taken away if you file bankruptcy? As a general rule, 401ks are protected in bankruptcy.  The bankruptcy code has 2 different key sections that will protect your 401k funds. The first section is 541 of the bankruptcy code.  Under section 541, if there are restrictions on the ability of a beneficiary Read more about Are 401ks protected in bankruptcy?[…]

Owe Taxes

Could you owe taxes because you don’t charge enough? One Harvard professor seems to think so

Want to get rich quick?  I mean really, really rich. . . billions. All you need to do is turn in someone who is doing something to pay less taxes to the IRS. Think I’m being a bit over the top?  Lets look at one whistleblower case filed by a former Vanguard attorney who is Read more about Could you owe taxes because you don’t charge enough? One Harvard professor seems to think so[…]

Roth IRAs

Does the IRS approve of Roth IRA LLCs?

Did you know that if you mess up your IRA rollover the IRS has a process where you request a second chance?  The great part is they typically grant the 2nd chance so long as you haven’t done anything wrong with the IRA.  Which brings up an IRS ruling that just came out today about Read more about Does the IRS approve of Roth IRA LLCs?[…]