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The Impact of New IRS Rules on Self-Directed IRAs


As part of the gigantic $1.7 BILLION spending bill, the SECURE 2.0 Act introduces several important provisions that should help retirement savers across the nation. On this episode of Adam Live, IRA Financial founder, Adam Bergman, Esq. will discuss the impact that SECURE 2.0 will have on Self-Directed IRA retirement accounts, and how you should prepare. Join us LIVE on Wednesday, January 4th at 12PM EST! -- About IRA Financial: IRA Financial Group was founded by Adam Bergman, a former tax and ERISA attorney who worked at some of the largest law firms. During his years of practice, he noticed that many of his clients were not even aware that they can use an IRA or 401(k) plan to make alternative asset investments, such as real estate. He created IRA Financial to help educate retirement account holders about the benefits of self-directed retirement plan solutions. IRA Financial is a retirement account facilitator, document filing, and do-it yourself document service, not a law firm. IRA Financial Group does not provide legal services. No attorney-client relationship exists between Client and IRA Financial Group, its management, salespersons or IRA Financial's in-house legal counsel. IRA Financial Group provides IRA retirement facilitation service and CANNOT provide Client with legal, investment, or financial advice. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice. IRA Financial is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of a competent professional person should be sought. (From a Declaration of Principles jointly adopted by a Committee of the American Bar Association & a Committee of Publishers and Associations.). The scope of Professional Services does not include the costs of any custodian related services. Learn More: #secureact #retirement #selfdirectedira #ira #sdira #investing #rothira #rmd #adambergman #irafinancial #adamlive #taxes #retirementplanning #taxplanning #alternativeinvestments #saverscredit #legislation #budget...(read more)



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Self-directed IRAs have been gaining popularity in recent years due to their ability to offer investors more control over their retirement savings and the opportunity to invest in non-traditional assets such as real estate, private equity, and cryptocurrencies. However, new rules issued by the IRS could impact self-directed IRA investors by limiting certain types of investments and increasing taxes on prohibited transactions. The new rules, which were released in July 2020, include changes to the definition of "acquisition indebtedness" for purposes of the unrelated business income tax (UBIT), new regulations on how self-directed IRAs can invest in certain types of assets, and increased penalties for prohibited transactions. One significant change is the new definition of acquisition indebtedness. This term refers to debt that is used to acquire property that produces unrelated business income (UBI), which is subject to UBIT. Under the new rules, acquisition indebtedness will be limited to the amount of debt that is directly related to the acquisition or improvement of the property. This means that IRA investors will no longer be able to use their self-directed IRAs to leverage their investments by taking out loans that exceed the cost of the property. Another change that could impact self-directed IRAs involves investments in private equity funds. The new rules clarify that self-directed IRAs can only invest in private equity funds that are structured as partnerships, and that the IRA must be a "passive investor" with no control over the partnership's management or investments. This restriction could pose a challenge for investors who want more control over their investments or who prefer to invest in private equity firms that are structured differently. In addition to these changes, the IRS has also increased penalties for prohibited transactions, which are transactions that violate the rules regarding self-dealing or conflicts of interest. The penalty for a prohibited transaction has been increased from 15% to 20% of the amount involved, and the penalty can be assessed for each year that the transaction remains unresolved. As these new rules take effect, it is important for self-directed IRA investors to stay informed and to work with experienced professionals who can help them navigate the complex regulations. By doing so, investors can continue to take advantage of the benefits of self-directed IRAs while complying with the latest changes from the IRS. https://inflationprotection.org/the-impact-of-new-irs-rules-on-self-directed-iras/?feed_id=95901&_unique_id=645a64296de96 #Inflation #Retirement #GoldIRA #Wealth #Investing #401k #AdamBergman #AdamLive #alternativeinvestments #investing #ira #IRAFinancial #Retirement #retirementlegislation #retirementplanning #RMD #RothIRA #Saver’sCredit #sdira #SECURE2.0 #secureact #selfdirectedira #sepira #simpleira #Solo401k #TaxPlanning #taxes #SimpleIRA #401k #AdamBergman #AdamLive #alternativeinvestments #investing #ira #IRAFinancial #Retirement #retirementlegislation #retirementplanning #RMD #RothIRA #Saver’sCredit #sdira #SECURE2.0 #secureact #selfdirectedira #sepira #simpleira #Solo401k #TaxPlanning #taxes

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