Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Responds To Forbes' "Prohibited Transaction Causes IRA To Lose Bankruptcy Exemption" Blog Post

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Jim Hitt encourages everyone to take note of the fact that Self-Directed IRA bankruptcy exemptions can be lost in some circumstances. Forbes' "Prohibited Transaction Causes IRA To Lose Bankruptcy Exemption" blog post brings this to light.

American IRA CEO

American IRA CEO, Jim Hitt

It is important to be aware of the IRS rules. It is also important to note that people who dabble in the gray area should know that in these areas, the IRS determines 'intent' and that means a gray area can quickly be deemed a prohibited transaction.

Jim Hitt is a strong supporter of Self-Directed IRA clients educating themselves so that they can both maximize their profits and protect their IRA funds. This Forbes blog post "Prohibited Transaction Causes IRA To Lose Bankruptcy Exemption" begins by explaining that some people are not aware that many IRAs benefit from bankruptcy protection. The blog cautions that this protection can be lost.

Jim comments "It is absolutely true that bankruptcy protection can be lost. Prohibited transactions performed in an IRA not only result in penalties and taxes but also in the loss of protections, such as bankruptcy protection. This is why it is critically important to be aware of the IRS rules. It is also important to note that people who dabble in the gray area should know that in these areas, the IRS determines 'intent' and that means a gray area can quickly be deemed a prohibited transaction."

The blog goes on to say "The transactions at issue involved the acquisition and development by the IRA of four acres of real property. Basically, the debtor and his wife co-owned a limited liability company that, with the IRA, executed a partnership agreement. That agreement provided that the IRA would contribute capital by delivering the real property as a noncash contribution; the IRA would also contribute cash, too. Under the agreement, the LLC would later contribute cash. The IRA funded the entire purchase price of the land. The land was conveyed to the IRA and the LLC, both with an undivided one-half interest."

On the surface, this transaction seems okay. Though as the courts dug deeper, things began to unravel and it was determined that the IRA account holders received a current benefit from this transaction.

This is a very important blog that should be viewed by every IRA holder to ensure they understand the case so they can ensure they are not performing transactions that can also be deemed as prohibited.

About American IRA, LLC:

American IRA is committed to providing every client with gold-level service, regardless of account size. Experience their expertise through their certified IRA services professionals. Enjoy the value with one low annual fee of $285 with unlimited assets and unlimited account values. American IRA clients love the benefit of no charge for "All Cash" accounts. The performance of the American IRA staff is unmatched, with quick and efficient processing within 48 hours.

American IRA services thousands of clients and has over $300 million in assets under administration.

American IRA was built by investors for investors, and brings their successful investment experience to the table, providing excellent educational material showing the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

American IRA is conveniently located in Asheville, NC and Charlotte, NC, and serves clients nationwide.

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