Question of the day!

[Limper]

If I form an LLC or Corporation and now have shares of stock to issue... can I sell those shares to my Roth IRA and Legacy IRA (old 401k money) there by gaining access to the capital in those accounts without having to take teh tax hit of just pulling out?

I'm trying to figure out the best route to getting my capital in one pool as if I could get all the grip in the various accounts working in one place then some other person could have my current job as I'd no longer need it.

[TiQuinn]

Wouldn't your stock need to be publicly traded in order for the company managing your IRA's to purchase it?

[Limper]

Wouldn't your stock need to be publicly traded in order for the company managing your IRA's to purchase it?

I believe that one can hold non publicly traded stock certificates in ones accounts at self directed brokerages.

[Xavier Lang]

That is not a question I can answer. It sounds like something someone would have already tried if it was legal.

[shiningbrow]

http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

In perusing the above, it does not look like you can but, the best thing to do is to call the IRS and ask them. You don't have to identify yourself, just explain what you are trying to do and that you want to do it legally, to find out what your legal responsibilities are. They are amazingly helpful.

[Limper]

http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

In perusing the above, it does not look like you can but, the best thing to do is to call the IRS and ask them. You don't have to identify yourself, just explain what you are trying to do and that you want to do it legally, to find out what your legal responsibilities are. They are amazingly helpful.

Thats how it looked to me as well... it does seem to good to be true IMO.

[The Theocrat of Poon-Tang]

I'm not sure of this myself, Limp. I would ask a tax professional in your area, though, before I ask anyone from the IRS. Years of dealing with them on a professional level does not exactly inspire much confidence in their ability to provide a correct (or consistent) answer.

[cnath.rm]

http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

In perusing the above, it does not look like you can but, the best thing to do is to call the IRS and ask them. You don't have to identify yourself, just explain what you are trying to do and that you want to do it legally, to find out what your legal responsibilities are. They are amazingly helpful.As far as I've heard, you aren't supposed to be able to have your ira buy stock yourself...

Thankfully, the IRS isn't actually in charge of retirement accounts, it's the Dept of Labor. So if you get a waiver from the DoL you can tell the IRS to stick it. Of course, in order to do it all right, you need an accountant who had dealt with it and knows the ins and outs. I was at a real estate investors meeting and heard an accountant talking about all the stuff one could do... he hadn't found anything that the DoL wouldn't approve when asked. This includes the guy who wanted a new Rolls... they moved his retirement accts into self-directed roth ira's, formed a new LLC with him as the pres, and sold the stock to the Roth's for the amount they needed to buy the car. (a company pres should have a company car after all....)

Of course, I should mention that this accountant ended up as a guest of the state of MI when he hadn't put cash into accounts for clients like he was supposed to and had spent it himself... However I think it's still worth looking into with a good accountant at least...