Discussion:Self Directed IRA & IRA Rollover
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Discussion Forum Index --> Basic Tax Questions --> Self Directed IRA & IRA Rollover
Discussion Forum Index --> Tax Questions --> Self Directed IRA & IRA Rollover
| 28 May 2009 | |
| There's a company called Benetrends, Inc. who will create a new corporation with a new retirement plan inside. The original retirement plan is sold and proceeds are rolled into the new retirement account. The new retirement plan purchases stock in the corporation. The client can now use the money from the stock sale to open the business. According to this company, this is a self direct IRA and there are no tax consequences or penalties.
Is this legal? | |
Mtmckeecpa (talk|edits) said: | 29 May 2009 |
| S,
I've heard of this but my understanding is that it needs to be through a 401(k). I think the concern is that there could be a conflict between who is really benefiting from the business, the 401k plan or the owner of the 401k plan who is an employee of the new corporation. I thought (?) there were some issues too if there were employees in the new corp that needed to be covered under the 401k??? If you want, leave your email address on my page and I will put you in touch with a TPA that can better answer your questions. Good luck. | |
| May 30, 2009 | |
| See the IRS's thinking at http://www.irs.gov/pub/irs-tege/rollover_guidelines.pdf . There are a few things you need to be careful about but it's quite possible (with a qualified plan). | |
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