All posts by Warren Baker

Self-Directed IRA + K-1 = IRS scrutiny concerns

April 24, 2023Recent News, Self Directed IRA, TaxIRS, K-1, self-directed IRA, UBTI, UDFIWarren Baker

My clients frequently ask, “what self-directed IRA investments have the most potential for IRS scrutiny?” While most clients think this question is related to the specific type of investment, to me, the question is more about the collateral consequences of a particular investment. IRS scrutiny is very rarely a random occurrence – instead, the IRS questions … Continue reading Self-Directed IRA + K-1 = IRS scrutiny concerns →

SEC and FINRA warn self-directed IRA investors about inherent dangers

February 8, 2023Recent News, Self Directed IRAWarren Baker

On February 7, 2023, the SEC and FINRA published overlapping warnings to the self-directed IRA investors. The SEC has done this in the past, and the new warnings appear to be sort of a “reminder” that self-directed IRAs raise some unique concerns for individual investors. I absolutely agree that investors that are unaware of the … Continue reading SEC and FINRA warn self-directed IRA investors about inherent dangers →

The True “Insanity” of the Build Back Better Act: IRA Tax Punishment to Non-Wealthy

October 1, 2021Estate Planning, Recent News, Self Directed IRA, Tax, UncategorizedWarren Baker

Sen. Joe Manchin, D-W.Va. (9/29/21): “What I have made clear to the President and Democratic leaders is that spending trillions more on new and expanded government programs, when we can’t even pay for the essential social programs, like Social Security and Medicare, is the definition of fiscal insanity.” Rep. Ilhan Omar, D-Minn (9/30/21): “Trying to … Continue reading The True “Insanity” of the Build Back Better Act: IRA Tax Punishment to Non-Wealthy →

[OPINION] Is Peter Thiel’s $5 billion Roth IRA legally valid? There are many reasons for doubt.

June 28, 2021Recent News, Self Directed IRA, TaxWarren Baker

On June 24th, ProPublica’s Justin Elliott published an article entitled, Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank. The article immediately received a lot of attention, with the term “Roth IRA” (of all things!) trending on Twitter. I was particularly interested in … Continue reading [OPINION] Is Peter Thiel’s $5 billion Roth IRA legally valid? There are many reasons for doubt. →

Warren Baker quoted in ProPublica Article on Peter Thiel’s $5 Billion Roth IRA

June 24, 2021Recent News, Self Directed IRA, TaxWarren Baker

An article was published in ProPublica today entitled, Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank (by Justin Elliott). The general idea of the article is to call attention to extremely large Roth IRAs and how they have been used by ultra-high-net … Continue reading Warren Baker quoted in ProPublica Article on Peter Thiel’s $5 Billion Roth IRA →

Forbes: “Got Alternative Assets In Your IRA? Watch Out.”

March 6, 2020Self Directed IRAWarren Baker

Ashlea Ebeling of Forbes published a piece today that features analysis and quotes by yours truly. The piece is called “Got Alternative Assets In Your IRA? Watch Out.” The article stems from the third Government Accountability Office (GAO) report on “self-directed IRAs” (i.e., retirement accounts that hold “unconventional” assets – e.g., real estate, private equity, … Continue reading Forbes: “Got Alternative Assets In Your IRA? Watch Out.” →

Red Flag: be careful when taking “early” IRA distributions – the IRS might check up on you

August 26, 2019Recent News, Self Directed IRA, TaxWarren Baker

The latest version of The Kiplinger Tax Letter has a good overview of some key considerations that can occur when an IRA owner takes a distribution out of his or her IRA prior to age 59 1/2. In addition to owing income tax on the IRA distribution (assuming a Roth IRA is not involved), a … Continue reading Red Flag: be careful when taking “early” IRA distributions – the IRS might check up on you →

Warren L. Baker featured as self-directed IRA expert in Natalie Choate’s new book “Life and Death Planning for Retirement Benefits” (8th Edition)

December 17, 2018Estate Planning, Recent News, Self Directed IRA, Taxestate planning, self-directed IRA, tax lawWarren Baker

I am very proud to announce the release of the 8th Edition of Life and Death Planning for Retirement Benefits, by Natalie B. Choate. Natalie is an extremely well-respected tax attorney in Boston, MA. For many years, her book has served as a THE AUTHORITY for estate planning and tax attorneys related to the legal … Continue reading Warren L. Baker featured as self-directed IRA expert in Natalie Choate’s new book “Life and Death Planning for Retirement Benefits” (8th Edition) →

Alert: retirement account pay-in increases coming in 2019

October 31, 2018Recent News, Tax401k limits, IRA limitsWarren Baker

The IRS has announced increases to many key contribution limits for IRAs and retirement plans starting in 2019. The 2019 payin limits for traditional IRAs and Roth IRAs jumps to $6,000. Individuals who are age 50 and older next year can contribute an additional $1,000. The maximum 401(k) contribution rises to $19,000, and people born before … Continue reading Alert: retirement account pay-in increases coming in 2019 →

Is the IRS getting more liberal with 60-day rollover mistakes? [Tip: blame your spouse!]

June 11, 2018Recent News, Tax401k-to-IRA rollover, 60-day rollover, IRS, Private Letter RulingWarren Baker

In a Private Letter Ruling (PLR) dated 3/5/18 (released by IRS 5/31/18; see full document here: PLR 201822033), the IRS waived the 60-day rollover requirement for the movement of retirement funds between a qualified employer retirement plan and an IRA (i.e., the individual involved took a distribution from her qualified plan but then mistakenly didn’t … Continue reading Is the IRS getting more liberal with 60-day rollover mistakes? [Tip: blame your spouse!] →