Prediction: IRS will launch a full scale audit attack on self directed IRAs

Today was a big day in the IRA world. First off the Department of Labor came out with their proposal for fiduciary standards.  In theory the proposal is supposed to be finalized within 75 days but I’m sure the traditional investment community is going to shift their lobbying efforts in gear and wipe it out. The Read more about Prediction: IRS will launch a full scale audit attack on self directed IRAs[…]

Guarantees and prohibited transactions for IRAs

Tax Court released a new ruling saying the mere act of guaranteeing the assets of an IRA is a prohibited transaction.  Nothing really new here but just confirms what a lot of people are trying to deny. Here’s an interesting twist though, the case was over the liability of the IRA owners for taxes generated Read more about Guarantees and prohibited transactions for IRAs[…]

Self directed IRA prohibited transaction rule gotchyas

Was reading a case today where the Department of Labor was saying an individual violated his fiduciary responsibilities by amongst other things, loaning money to his employees.  Appears the guy even went to jail for all the stuff he was doing with the retirement plan. I like to think I know the prohibited transaction rules Read more about Self directed IRA prohibited transaction rule gotchyas[…]

Thrift Savings Plans are subject to IRS Levy

Have a thrift savings plan with the government?  Running behind on your taxes?  Bad news, President Obama just signed a bill that specifically allows the IRS to levy (fancy legal talk for take away) your thrift savings plan. There really isn’t much to the bill, just adding a clause to pre existing law that thrift Read more about Thrift Savings Plans are subject to IRS Levy[…]

Merrill Lynch IRAs are invalid and distributed?

On October 17th, a district court affirmed a bankruptcy decision that said the mere act of signing the Merrill Lynch IRA account app caused the IRA to be fully distributed because the language in the application causes the IRA owner to engage in a prohibited transaction with their IRA. This is going to be really Read more about Merrill Lynch IRAs are invalid and distributed?[…]

Has the IRS determined that the Rollover as Business Startups (ROBS) isn’t valid?

Way back in 2008, the IRS issued some guidelines to a strategy they called the Rollover as Business Startup (ROBS).  Reading between the guidelines (sorry, couldn’t resist) it was apparent the service didn’t like the idea one bit.  If you want to learn more about the ROBS program this is a link to the IRS Read more about Has the IRS determined that the Rollover as Business Startups (ROBS) isn’t valid?[…]