Self Directed IRA

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) →

Common IRA K-1 mistakes. UBTI? Will the IRS notice?

March 22, 2018Recent News, Self Directed IRAIRS, K-1, self-directed IRA, UBTI, UDFIWarren Baker

It’s that time of year again – TAX SEASON – which, without fail, leads to many “interesting” situations/challenges for clients and their advisors. For me, because my legal practice involves clients with “non-traditional” assets within their retirement accounts (e.g., self-directed IRAs, Solo 401Ks), my perspective on this time of year is mostly based on issues … Continue reading Common IRA K-1 mistakes. UBTI? Will the IRS notice? →

Sorry, but UBTI losses from IRA (still!) don’t “flow through” to your individual tax return

October 25, 2017Recent News, Self Directed IRA, TaxWarren Baker

As you have written about extensively on this blog and within other “self-directed IRA” related articles, one of the key legal matters that SDIRAs face is “unrelated business taxable income” (UBTI) – i.e., current tax from the SDIRA’s investments. Generically speaking, UBTI occurs in two situations: (1) the SDIRA earns income (directly or through a … Continue reading Sorry, but UBTI losses from IRA (still!) don’t “flow through” to your individual tax return →

They’re BACK! … GAO conducting a third study of SDIRA marketplace

September 28, 2017Recent News, Self Directed IRA, TaxGAO, nontraditional investments, self-directed IRAWarren Baker

Earlier this week, I had my third official interview with the Government Accountability Office (GAO). First, a little history…I was first contacted by the GAO in late 2013, for a study they had been asked to conduct ((by Senator Ron Wyden, D-OR) on so-called “Large Balance IRAs” (a real “eye of the beholder” term!). This … Continue reading They’re BACK! … GAO conducting a third study of SDIRA marketplace →

Quoted in Forbes piece on Roth IRA/LLC case (Block Developers, LLC v. Commissioner)

August 10, 2017Recent News, Self Directed IRA, TaxWarren Baker

There has been some rumbling (at least in my world) over the past few weeks regarding another Tax Court dealing with Roth IRAs and “excess contribution” issues. The case, Block Developers, LLC v. Commissioner, involves four family members (father, mother, two children) that formed Roth IRAs and attempted to shift income that would otherwise … Continue reading Quoted in Forbes piece on Roth IRA/LLC case (Block Developers, LLC v. Commissioner) →