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BK-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 933
Experience:  Owner of a CPA firm
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Im getting legal advice regarding asset protection that I

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I'm getting legal advice regarding asset protection that I should form a Single Member LLC in which should be placed self-directed IRA accounts (two). My CPA, however, is unsure that this wouldn't be treated by the IRS as a huge distribution which I certainly do not want. He asks for reference in tax law indicating that this would not be the case. I have no intention of taking distributions until over 70.
Submitted: 6 years ago.
Category: Tax
Expert:  BK-CPA replied 6 years ago.

There is no direct code reference, but guidelines, and using IRA's in a business owned by the taxpayer is generally a very big "no!"


IRA's in an LLC owned by the taxpayer could still get taken directly from the taxpayer just like any other business interest where the taxpayer is BK as opposed to the business itself. The IRA's do afford some legal protection...


I'm just not seeing this one... have your lawyer clarify.


Thank you for your question.



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