The tax partners at the IRA Financial Group have designed an asset protection plan to protect retirement investors assets from confiscation or seizure
New York, NY (PRWEB) February 11, 2014
IRA Financial Group, the leading provider of self-directed IRA and Solo 401(k) Plans, introduces the ultimate asset protection plan for retirement investors. The “Ultimate” asset protection plan for retirement investors would allow one to use their IRA or 401(k) plan funds to buy certain assets that can be better shielded from potential confiscation or seizure. “The tax partners at the IRA Financial Group have designed an asset protection plan to protect retirement investors assets from confiscation or seizure, “ stated Adam Bergman, a tax partner with the IRA Financial Group.
Unlike precious metals, the Internal Revenue Code and the legislative history does not include a requirement that IRS approved coins be held in the “physical possession of a U.S. trustee.” If so, the requirement would have been so stated in the tax code. Accordingly, it appears that IRS approved coins can be purchased by a Self-Directed IRA LLC and not be held at a depository or U.S. Bank. “Purchasing IRS approved coins with a self-directed IRA LLC or solo 401(k) plan is an effective strategy to protecting retirement assets from confiscation or seizure, “ stated Mr. Bergman.
However, according to Mr. Bergman, IRA Financial Group suggests that our clients try to hold IRS approved coins at a bank safety deposit box, depository, or some sort of third-party vault in the name of the IRA LLC. The reason for this is that it is another level of separation between the IRA holder - a disqualified person - and the IRA LLC assets (the coins), which the IRS plan asset rules will attribute to the IRA even though the coins will be owned by the LLC. Irrespective of the fact that it appears that IRS approved coins are not required to be held in the “physical possession of a U.S. trustee”, holding the coins in the physical possession of a disqualified person puts the onus on the IRS holder, as the disqualified person, to prove that no self-dealing or conflict of interest event occurred in the case of an IRS inquiry. For IRA Financial Group clients that wish to hold IRS approved coins in their physical possession, our retirement tax professionals suggest that an affidavit be drafted stating that the IRS approved coins are being held solely for the benefit of the IRA and not for any personal or other benefit. We also suggest that the affidavit be signed and notarized.
In summary, the "physical possession" threshold seems to only apply to IRS approved precious metals under Internal Revenue Code Section 408(m), although the tax code does not state anywhere that the coins could be held in the possession of a disqualified person. That being said, for all individuals wishing to hold IRS approved coins personally, the retirement tax professionals at the IRA Financial Group suggest having some sort of affidavit stating that the coins will not be held for any personal benefit and will, thus, not violate any of the Internal Revenue Code Section 4975 self-dealing or prohibited transaction rules.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading provider of IRS approved self-directed IRA LLC and solo 401(k) Plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.