Comments on: Prohibited Transaction Basics http://www.jeffnabers.com/2008/04/24/prohibited-transaction-basics/ The No-B.S. Guide to Building Real Wealth in Your Self-Directed IRA or Solo 401k Sat, 17 Dec 2011 03:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ray Ziarno http://www.jeffnabers.com/2008/04/24/prohibited-transaction-basics/comment-page-3/#comment-37723 Ray Ziarno Thu, 23 Jun 2011 23:54:11 +0000 http://nabersgroup.wordpress.com/?p=36#comment-37723 After one phone call to your firm, and hours spent reading much/most of the info on your webpages, incl. this blog, I still need clarification, if possible. (By the way, I'm awe of your seeming ability to answer all of the questions on this blog, from '08 till the present!) I'm brand-new to the Solo 401K "game" so, here goes: 1. I'm retired, over 65. and have over $ 50K in a 457 savings account (from state government employment). I've previously transferred $$ from that 457, into a Roth IRA, now invested in a well-known, U.S. financial/brokerage firm. The IRS, as des- cribed in their Fed.income tax forms, considers the 457 to be the same as a "regular" 401K, with corresponding tax/penalty rules for any transfer/rollover actions. 2. Can I set up a Solo 401 K from these remaining 457 $$ ? I'm not aware of any limitations in doing so, from current custodian of the 457. (In other words... no problem putting 457 $$ into a Roth; how about a Solo 401K? (Obviously, I could continue doing so. adding to a Roth, but I'm currently interested in using the remaining 457 $$ to utilize other investment options, and/pr buying real estate, without incurring the taxes from a 457 to Roth transfer. (Current investment options in that 457 are severely limited to a retired person of my age.) 3. If..IF...I could set up Solo 401K, per above, could I take a personal $$ loan, and purchase property outside of the U.S.? I'm aware of the many possible investment options within the U.S..... how above overseas? (Property and/or house, NOT for investment purposes, but for personal use.) I've read most/all of your info on DQP's/PT's, etc. and, other than the "overseas" aspect, I should be OK. (No DQP's, as you've described, in any of my desired loan uses.) So, that's it for now. I'll try calling you, if you so desire, for clarification. Thanks, in advance After one phone call to your firm, and hours spent reading much/most of the info on your webpages, incl. this blog, I still need clarification, if possible. (By the way, I’m awe of your seeming ability to answer all of the questions on this blog, from ’08 till the present!) I’m brand-new to the Solo 401K “game” so, here goes:

1. I’m retired, over 65. and have over $ 50K in a 457 savings account (from state government employment). I’ve previously transferred $$ from that 457, into a Roth IRA, now invested in a well-known, U.S. financial/brokerage firm. The IRS, as des-
cribed in their Fed.income tax forms, considers the 457 to be
the same as a “regular” 401K, with corresponding tax/penalty rules for any transfer/rollover actions.

2. Can I set up a Solo 401 K from these remaining 457 $$ ? I’m not aware of any limitations in doing so, from current custodian of the 457.
(In other words… no problem putting 457 $$ into a Roth; how
about a Solo 401K? (Obviously, I could continue doing so. adding to a Roth, but I’m currently interested in using the remaining 457 $$ to utilize other investment options, and/pr buying real estate, without incurring the taxes from a 457 to Roth transfer. (Current investment options in that 457 are severely limited to a retired person of my age.)

3. If..IF…I could set up Solo 401K, per above, could I take a personal $$ loan, and purchase property outside of the U.S.?
I’m aware of the many possible investment options within the U.S….. how above overseas? (Property and/or house, NOT for
investment purposes, but for personal use.) I’ve read most/all of your info on DQP’s/PT’s, etc. and, other than the “overseas”
aspect, I should be OK. (No DQP’s, as you’ve described, in any
of my desired loan uses.)

So, that’s it for now. I’ll try calling you, if you so desire, for
clarification. Thanks, in advance

]]> By: John http://www.jeffnabers.com/2008/04/24/prohibited-transaction-basics/comment-page-3/#comment-36547 John Thu, 26 May 2011 16:29:52 +0000 http://nabersgroup.wordpress.com/?p=36#comment-36547 Is a "hard money" loan to a general contractor (service company) a prohibited transaction? Is a “hard money” loan to a general contractor (service company) a prohibited transaction?

]]> By: Steve http://www.jeffnabers.com/2008/04/24/prohibited-transaction-basics/comment-page-3/#comment-36535 Steve Thu, 26 May 2011 05:31:35 +0000 http://nabersgroup.wordpress.com/?p=36#comment-36535 Is a "hard money" loan to an unrelated entity considered a DT? Also, if the company provides general contracting services, would that make it a DT? Is a “hard money” loan to an unrelated entity considered a DT?
Also, if the company provides general contracting services, would that make it a DT?

]]> By: Bob K. http://www.jeffnabers.com/2008/04/24/prohibited-transaction-basics/comment-page-3/#comment-31633 Bob K. Wed, 09 Mar 2011 20:04:05 +0000 http://nabersgroup.wordpress.com/?p=36#comment-31633 I have a "check writing" self-directed LLC. In a financial bind I wrote a check to myself, thinking all I had to do was put the premaure distribution on my taxes and pay the penalties. Now I find out I should have sent the check to my IRA custodian and they would send the distribution minus the withouldings to me. Any thoughts on how to proceed? Early distribution or did I just make a prohibited transaction and kill my IRA? I have a “check writing” self-directed LLC. In a financial bind I wrote a check to myself, thinking all I had to do was put the premaure distribution on my taxes and pay the penalties. Now I find out I should have sent the check to my IRA custodian and they would send the distribution minus the withouldings to me. Any thoughts on how to proceed? Early distribution or did I just make a prohibited transaction and kill my IRA?

]]>