Can funds from SEP-IRAs, SIMPLE-IRAs, Coverdell IRAs (Education IRAs), 403(b) Plans and Health Savings Accounts (HSAs) be invested with CheckBook Control?
Yes, Check Book Control can used with funds from all those types of accounts.
Can my CheckBook Retirement Account partner with other entities, including disqualified person, to invest?
Yes, but such investments should analyzed on a case-by-case basis to ensure compliance with the prohibited transactions rules. No allocation of equity or profits should be given to disqualified persons in exchange for services rendered. All allocations must be pro-rata based on cash invested and all subsequent follow-on investments must follow the initial allocation.
Can I use my IRA to buy a vacation property?
Yes, but not for personal use prior to having it distributed from the IRA.
If I own a business that has full time employees, can I start a new business to sponsor a Solo 401k Plan?
No, the Controlled Group Rules require that all your businesses be taken into account when determining whether you qualify. However, each scenario must be evaluated as the rules are complex.
Will an investment into a REIT result in UBIT?
No, it generally will not as indicated in IRS Revenue Ruling 66-106.
Can my Checkbook Retirement Plan provide interest fee loans to non-disqualified persons?
No, retirement funds must be used for the Exclusive Benefit of the retirement account and must be invested to earn a reasonable rate of return.
Can my self-directed retirement account earn income from short-term real estate flips?
Yes, but if engaged in on an ongoing basis this may result in taxable income to the retirement account. Determining at which point UBIT may apply requires analysis by a qualified professional.
Can I act as the real estate agent/broker on real estate deals in which my Checkbook Retirement Plan invests and earn commissions?
No, earning such commissions could be construed as self-dealing and violating the prohibited transaction rules. However, there are ways to work around this restriction.