DEAR BILL, I HAVE HEARD THAT IT IS POSSIBLE TO USE IRA MONEY TO BUY A BUSINESS, PROPERTY INCLUDING IN FOREIGN COUNTRY WITHOUT CONSIDERING SUCH TRANSACTIONS AS DISTRIBUTION AND THERFORE THEY ARE NOT TAXABLE. IT IS CALLED GUIDANT FINANCIAL SYSTEM. IT MAKES THESE PURCHASES AKIN TO BUYING STOCKS OR MUTUAL FUNDS, ETFS ETC. COULD YOU CONFIRM WHETHER IT IS POSSIBLE TO DO SO AND WHETHER IT IS ALLOWED BY IRS. COST OF APPLYING GUIDANT SYSTEM TO MODIFY RETIREMENT PLAN WAS QUOTED AT AROUND $5000. COULD YOU PLEASE SHED SOME LIGHT ON THE PLAN AND IT'S AUTHENTICITY ? THANKING YOU, xxxxxx x xxxx.
It is possible to invest in a business or property with funds in your IRA. Because it is an investment within the IRA it is not considered a taxable distribution. However, if the transaction is considered a prohibited transaction then the entire IRA becomes immediately taxable. So it is very important that the entire arrangement meet certain requirements so as not to be deemed a prohibited transaction.
I am aware of Guidant Financial and the services they promote but I have no direct experience with them. If you were to consider this type of arrangement, you may want to consult with an experienced ERISA attorney before proceeding.
what is or who is an ERISA ATTORNEY ?
An ERISA attorney is an attorney who specializes in IRA/Pension/Retirement plan issues. ERISA is the acronym for the Employee Retirement Income Security Act of 1974. http://www.shulaw.com/practices/ERISA-Litigation/
EA, CEBS - 32 years experience providing financial advice