Comments on: Coinvesting with your plan / Partnering with disqualified persons http://www.jeffnabers.com/2008/07/24/coinvesting-with-your-plan-partnering-with-disqualified-persons/ The No-B.S. Guide to Building Real Wealth in Your Self-Directed IRA or Solo 401k Wed, 25 Aug 2010 01:56:20 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: admin http://www.jeffnabers.com/2008/07/24/coinvesting-with-your-plan-partnering-with-disqualified-persons/comment-page-1/#comment-661 admin Thu, 07 Jan 2010 20:47:11 +0000 http://nabersgroup.wordpress.com/?p=48#comment-661 Brian, This conversation is getting a bit too complex for the scope of this blog. I recommend you contact my office at 877-903-2220. Jeff Brian,

This conversation is getting a bit too complex for the scope of this blog. I recommend you contact my office at 877-903-2220.

Jeff

]]> By: Brian http://www.jeffnabers.com/2008/07/24/coinvesting-with-your-plan-partnering-with-disqualified-persons/comment-page-1/#comment-660 Brian Fri, 01 Jan 2010 15:53:03 +0000 http://nabersgroup.wordpress.com/?p=48#comment-660 Jeff, just to go a bit further on the scenario that John raises, as it is conceptually similar to what I am interested in doing, what more specifically is wrong, or could be done differently to be in compliance? Certainly an IRA can own real estate, and it is my understanding that you can pool money from two different IRAs to make a purchase (although I'm not exactly clear on how this is accomplished). Is the fact that they formed an LLC in their roles as individuals, that the IRAs then invest in, that is causing the problem? I am assuming that they are using the LLC to a). limit their liability, and/or b). as a mechanism for pooling IRA resources. I know from one of your other posts you make reference to an " IRA LLC", is there another way to achieve these objectives? Does the LLC need to be formed my the IRA rather than by the individuals (I'm not even certain if that can be done)? Thanks. Jeff,

just to go a bit further on the scenario that John raises, as it is conceptually similar to what I am interested in doing, what more specifically is wrong, or could be done differently to be in compliance?

Certainly an IRA can own real estate, and it is my understanding that you can pool money from two different IRAs to make a purchase (although I’m not exactly clear on how this is accomplished). Is the fact that they formed an LLC in their roles as individuals, that the IRAs then invest in, that is causing the problem?

I am assuming that they are using the LLC to a). limit their liability, and/or b). as a mechanism for pooling IRA resources. I know from one of your other posts you make reference to an ” IRA LLC”, is there another way to achieve these objectives? Does the LLC need to be formed my the IRA rather than by the individuals (I’m not even certain if that can be done)?

Thanks.

]]> By: admin http://www.jeffnabers.com/2008/07/24/coinvesting-with-your-plan-partnering-with-disqualified-persons/comment-page-1/#comment-659 admin Thu, 17 Dec 2009 16:51:26 +0000 http://nabersgroup.wordpress.com/?p=48#comment-659 John, In most cases, yes that would be a PT. I suggest re-reading the post above. Jeff John,

In most cases, yes that would be a PT. I suggest re-reading the post above.

Jeff

]]> By: John http://www.jeffnabers.com/2008/07/24/coinvesting-with-your-plan-partnering-with-disqualified-persons/comment-page-1/#comment-658 John Thu, 17 Dec 2009 13:56:16 +0000 http://nabersgroup.wordpress.com/?p=48#comment-658 Jeff, I am a little confused by this... I know you cannot give legal advice but what is your opinion of the following situation: -- My wife and I form an LLC -- Our IRAs jointly fund the LLC -- LLC buys and sells homes or rents homes (NOT to our ascendants, descendants or with each other) -- LLC sends gains back to the IRAs proportionally based on initial investment This is not a prohibited transaction in and of itself, is it (by just having the IRAs co-invested)? Jeff,
I am a little confused by this… I know you cannot give legal advice but what is your opinion of the following situation:
– My wife and I form an LLC
– Our IRAs jointly fund the LLC
– LLC buys and sells homes or rents homes (NOT to our ascendants, descendants or with each other)
– LLC sends gains back to the IRAs proportionally based on initial investment
This is not a prohibited transaction in and of itself, is it (by just having the IRAs co-invested)?

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