Presentation: “Self-Directed IRAs: New Legal Developments” – By: Warren L. Baker

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If you haven’t caught one of my recent presentations on self-directed IRAs and related legal/tax developments, but you would like to, my recent presentation for Clear Law Institute (originally aired on August 5th) is available for streaming on-demand using this link:

Overview of Presentation:

The use of “self-directed IRAs” to invest in real estate, private equity, and other “nontraditional” assets has grown rapidly over the past 10 years—and so have the significant legal and tax problems that they can raise.  In this webinar, you’ll learn how to:

  • Identify recent legal changes that affect all types of IRA’s
  • Distinguish between self-directed IRAs and other types of IRAs
  • Distinguish between different types of self-directed IRAs
  • Identify and avoid legal and tax problems that self-directed IRAs can raise, including:
    • Invalidation of the account (resulting in complete retroactive taxable distribution and IRS penalties)
    • Current tax consequences to the IRA itself resulting from investments that are not automatically tax-deferred (“UBTI” and “UDFI”)
    • Lack of liquidity and/or valuation mistakes causing required minimum distribution (RMD) problems during the IRA owner’s life, and
    • Post-death asset management and distribution challenges
  • Understand the impact of four recent Tax Court cases that affect self-directed IRAs that invest into nontraditional assets.
  • Understand the Rollover as Business Start-Up (“ROBS”) (i.e., 401k-owned C-Corporation) structure and how it differs from self-directed IRAs and IRA-owned LLCs.
  • Understand the recent Government Accountability Office (GAO) Report recommendations regarding IRAs and the IRS.
  • Understand the changes to Form 5498 (related to the new requirement for IRA custodians to disclose accounts containing “certain specified assets” – i.e., assets that are not publicly-traded) and related IRS implications.