Hands Off My IRA !
By Kaaren Hall , CEO , uDirect IRA Services
In this article I ’ m going to discuss a few reasons why Sections 138312 and 138314 of the House reconciliation bill ( released September 13th ) threatens the investment choices of an approximate 3 Million SelfDirected IRA investors in America . It ’ s time to tell your Congressional Representatives , “ Hands Off My IRA ”!
Image by 1778011 from Pixabay
Firstly , the proposal could make it so that you could no longer purchase private equity or use the IRAOwned LLC . Secondly , what ’ s worse is that the proposal offers no “ grandfather clause ” and says you would have to remove those existing assets from your IRA by 2023 . As a result , the implications are widereaching and would cause a lot of damage to IRA savers who may be forced to pay taxes on the value of those assets . Thirdly , it could wreak havoc on asset sponsors who could be forced to look for new sources of capital .
Specifically , the proposal addresses :
● Private Placements ( e . g . hedge funds , real estate funds , private equity funds , etc .)
● Checkbook Control IRA LLCs and Trusts
● Minority interests in LLCs that are 10 % owned by the IRA or accountholder
● Investments requiring the IRA owner to be an accredited investor
" SelfDirected IRA investors as a group hold some $ 118 Billion is retirement assets . These assets are crucial to our economy because these assets are to be used for expenses in retirement . The proposal could decimate the nest egg of many middleclass savers ."
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