an individual can use a self-directed IRA and lend funds to a sibling, cousin, aunt, uncle, friend, neighbor, or colleague in order to help that person pay for some of the storm related damages caused by Hurricane Sandy
Miam, FL (PRWEB) November 03, 2012
Adam Bergman, Esq., a tax attorney for the IRA Financial Group, the leading facilitator of self directed IRA LLC retirement structures, believes that the self-directed IRA structure could be a valuable for solution for victims of Hurricane Sandy. “With IRA Financial Group’s self-directed IRA structure, people can use their retirement funds to lend certain family and friends money in order to help pay for some of the damages caused by the storm while at the same time benefiting their retirement account, “ stated Mr. Bergman. “We have began to see people from the North east calling and asking whether they could use their retirement funds to help pay for repairs needed due to Hurricane Sandy, “ stated Maria Ritsi, a senior paralegal with the IRA Financial Group.
The Internal Revenue Code does not describe what a Self Directed IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits Disqualified Persons from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of retirement savings and to prohibit those in control of IRAs from taking advantage of the tax benefits for their personal account. In general, one cannot use retirement funds and engage in a transaction with a “disqualified person”. A “disqualified person” is defined as the IRA holder and his or her lineal descendants (parents, children, spouse, daughter-in-law or son-in-law or any entity controlled by such persons.) “Therefore, an individual can use a self-directed IRA and lend funds to a sibling, cousin, aunt, uncle, friend, neighbor or colleague in order to help that person pay for some of the storm related damages caused by Hurricane Sandy, “stated Mr. Bergman.
A Self-Directed IRA, also called a Self-Directed IRA LLC with checkbook control, is an IRS approved structure that allows one to use their retirement funds to make real estate and other investments tax-free, including peer-to-peer lending, without custodian consent. The Self-Directed IRA involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the IRA custodian) and managed by you or any third-party. As manager of the IRA LLC, the IRA holder will have control over the IRA assets to make the investments he or she wants and understands – not just investments forced upon you by Wall Street.
With a self-directed IRA with checkbook control established through IRA Financial Group, each client will have the ability to work directly with a tax attorney to establish their IRS compliant self-directed IRA LLC structure. “working with the tax attorneys gives our clients a level of experience and knowledge unmatched in the industry, “ stated Mr. Bergman.
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 and Dewey & LeBoeuf LLP.
IRA Financial Group is the market’s leading “Checkbook Control” Self Directed IRA and Solo 401k Plan Facilitator. We have 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 tax-free and 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.