New Online Workshop: Avoid Prohibited Transactions with Your Pension Plan
A prohibited
transaction could subject all of your pension funds to excess tax, interest and penalties. You can learn more about what it takes to easily avoid the problems in this week’s Online Workshop, available exclusively for First Class Lounge members.
My new workshop is on Avoiding Prohibited Transactions, and how to safely and profitably invest your pension funds. If you’re a member of the First Class Lounge, you can watch it by clicking here. There’s also lots of information in our 5-part Special Report series on IRA investing, which you can order through our Shopping Page.
Or, if you’re a member of the First Class Lounge, you can download the IRA investing series it for free in the eBooks Preview section of our site.
If you’re not yet a member of First Class Lounge, you can try us out for free for 30 days. Not only will you get immediate access to my new workshop and the new Special Report, but as a member of the First Class Lounge you will receive:
- Free access to my weekly online workshops
- Free access to our Special Reports
- An opportunity to ask questions about your personal situation to be answered in a future online workshop
- 10% off TaxLoopholes product purchases
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Hi,
I am an active day-trader who is successfully trading stocks / options in a LLC entity. I originally funded my LLC with my own after-tax money.
I’d like to be able to invest my own 401(K) + my spouse’s 401(K) assets into my LLC, where I plan to continue trading stocks / options. How can I accomplish this without causing problems with prohibited transactions / disqualified persons / etc..?
The IRA LLC (or any form of pension for that matter) must have special language. So, most likely you can’t use the existing “standard” LLC for your self-directed money.
You mentioned that you and your spouse have 401(k) plans. If you’re still employed at the same place where you started these 401(k) plans (and they aren’t Solo 401(k) plans), you won’t be able to self-direct these plans for day trading.
However, if you have left your employ, you can do a IRA Rollover (step one of this whole process), then set up an IRA LLC, fund it with your rollover funds and trade to your heart’s content!