Hands Off My IRA! Important Legislative Insight Every Investor Should Know
Special Contribution by Kaaren Hall, CEO | uDirect IRA Services
In this article I’m going to discuss a few reasons why Sections 138312 and 138314 of the House reconciliation bill (released September 13th) threatens the investment choices of an approximate 3 Million Self-Directed IRA investors in America. It’s time to tell your Congressional Representatives, “Hands Off My IRA”!
Firstly, the proposal could make it so that you could no longer purchase private equity or use the IRA-Owned LLC. Secondly, what’s worse is that the proposal offers no “grandfather clause” and says you would have to remove those existing assets from your IRA by 2023. As a result, the implications are wide-reaching and would cause a lot of damage to IRA savers who may be forced to pay taxes on the value of those assets. Thirdly, it could wreak havoc on asset sponsors who could be forced to look for new sources of capital. Specifically, the proposal addresses:- Private Placements (e.g. hedge funds, real estate funds, private equity funds, etc.)
- Checkbook Control IRA LLCs and Trusts
- Minority interests in LLCs that are 10% owned by the IRA or account-holder
- Investments requiring the IRA owner to be an accredited investor
What Can You Do To Stop This?
Make your voice heard. Contact your elected officials in the United States House of Representatives and Senate. Tell your story. Let your Representatives and Senators know how this proposal could impact you personally. Not sure how to contact your U.S. Congressional Representative?Go to: https://www.house.gov/representatives/find-your-representative
Not sure how to contact your U.S. Senators?Go to: https://www.senate.gov/senators/senators-contact.htm
__________________________________________________________________________What This Proposal Does Not Affect
- Brick & Mortar Real Estate
- Raw Land
- Precious Metals
- Lending from IRAs
- Mobile Home Parks
- Investing in performing and non-performing debt
When Could This Take Effect?
Congress seems eager to have this and other matters resolved before the session adjourns December 10th. Take action now. Call, write, email or visit the offices of your representatives in the House and Senate.TEMPLATE LETTER FOUND HERE – https://udirectira.com/template-letter/