Jim Hitt’s Response to Appeals Court Upholding the Self-Directed IRA Strategy

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Jim Hitt of American IRA recently offered a response to the news that Self-Directed IRA owners scored a win in a recent appeals court decision, with business owners having grown a tremendous amount of wealth through the tax-protected account.

American IRA CEO

American IRA CEO, Jim Hitt

Investors have a tremendous amount of leeway with tax protections in a Self-Directed IRA. Although there are some explicitly-laid-out regulations that govern retirement accounts of any type that investors should always pay attention.

Over ten years ago, two brothers started an export business from scratch, eventually growing the business and transferring a tremendous amount of wealth into a Self-Directed IRA. The IRS was not too happy about the decision, arguing that while they had not necessarily violated tax law in this case, the brothers had still violated the spirit of the law.

The decision of the federal Appeals Court in Summa Holdings, Inc. v. Commissioner ruled in favor of the business.

That was not the initial decision, however, explains a recent blog post by Jim Hitt at AmericanIRA.com. The brothers in question had incomes that should have prevented them from making Roth IRA contributions to a certain extent, and the IRS was looking for owed income tax on DISC commissions as well as penalties for over-funding their Roth IRAs.

The higher court, however, struck down the decision, pointing out that the tax-protected accounts were being used as Congress had intended—or at least, as the laws were written.

The judge’s opinion went on to say that corporations and IRAs could in fact own shares in DISCs, making the investments within a Self-Directed IRA valid. In turn, the decision showed that there can be tremendous value to holding a Self-Directed IRA when it is done legally. In this case, the IRS complaints were deemed by the Appeals Court not to be valid according to the law.

“Investors have a tremendous amount of leeway with tax protections in a Self-Directed IRA,” noted Jim Hitt, who authored the post. “Although there are some explicitly-laid-out regulations that govern retirement accounts of any type that investors should always pay attention to, small victories like this show that there are tremendous growth opportunities in an IRA when handled legitimately. There’s no need to cheat the tax man to see fantastic growth with the proper investing strategy.”

Jim Hitt stressed that all investors who use IRAs should pay special attention to their limitations as well as their freedoms so they’re not faced with stiff penalties at tax time.

More can be found in the blog post at http://www.americanira.com/home-links/appeals-court-upholds-self-directed-ira-strategy-compares-irs-commissioner-emperor-caligula/ . To contact American IRA, call 1-866-7500-IRA(472).

About American IRA, LLC:

Click here to claim one of our 7 Self-Directed IRA guide(s).

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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