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Top 10 Self Directed IRA/401k Mistakes – #3 – Active Business Investment Is Not Subject To UBTI

Unrelated Business Taxable Income (UBTI) is generated when an Self Directed IRA engages in active business.  A business activity would be one in which the business is buying and/or selling goods and services. A good example would be if you purchased interest in a restaurant , oil and gas exploration, or even a apartment complex. […]

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Top 10 Self Directed IRA/401k Mistakes – #2 – Making Contribution To The IRA LLC

The Self Directed IRA owner makes their annual contribution directly into the bank account of the LLC rather than with the custodian of the  Self Directed IRA. In this case, you are personally interacting with your ICO (IRA-LLC).  That is considered a prohibited transaction. Additionally, an IRA contribution is only considered valid when it has […]

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Top 10 Self Directed IRA/401k Mistakes – #1 – Making A Personal Guarantee

The IRA account owner is considered a “disqualified person” and cannot provide a personal guarantee of a loan for the IRA. Therefore, when setting up an IRA or IRA-LLC (ICO), you cannot guarantee a loan to purchase property, nor could you open a margin account at a brokerage firm in which you personally guarantee to […]

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