The United States House of Representatives has proposed changes to the laws governing individual retirement accounts (IRAs) as part of its $3.5 trillion reconciliation package. If enacted into law, these changes will directly influence your ability to hold private equity in your self-directed IRA; certain investments will be disqualified, forcing you to sell or distribute.
These proposed IRA changes may be intended to target ultra-wealthy, mega-IRAs— however, it victimizes millions of ordinary investors, businesses, jobs, and your self-directed IRA.
To protect your self-directed IRA, this proposal must be eliminated and you must take action.
The proposed changes have a direct and immediate impact for self-directed IRA owners. Here is a brief summary or the changes.
For the full proposal and changes, click on the document Ways & Means Committee Proposal.
The proposed legislation would prohibit IRAs from holding private equity and debt securities.
It also prohibits IRA owners from investing in non-publicly traded entities in which the IRA owner and related entities (including the IRA itself) own more than a 10% interest or any entity in which the IRA owner is an officer or director, regardless of ownership percentage.
For example, single-member LLCs or any investment in an entity in which an individual is a director or officer could no longer be held in an IRA.
If the proposed legislation is enacted:
This means that if the asset(s) could not be sold or liquidated and must be distributed in-kind from the IRA, you would be facing significant and previously unforeseen financial and tax consequences, including taxes and penalties.
We are working closely with the Retirement Industry Trust Association (RITA) and the Individual Retirement Rights Association (IRRA) to address our concerns with the goal of having these provisions removed from the reconciliation package.
We are using all of our resources to stop these changes. We will continue to be a strong advocate for you and keep you up-to-date.
We also want to assure you that our company is well-positioned to continue succeeding, no matter the outcome of the proposed legislative changes.
As of now, the provisions prohibiting certain investments (targeting Private Placements) and changes to current ownership/officer relationship limits have been REMOVED from the Bill.
Several other provisions have been placed back into the Bill, with some amendments, that we also believe should be removed, for example, caps on Mega IRAs and changes to ROTH conversions.
Contact your elected officials in the United States House of Representatives and Senate, and tell them you oppose the IRA changes in the $3.5 Trillion Build Back Better Act.
These proposed changes have a tremendous negative affect on millions of hard-working Americans, small businesses, jobs, families, and communities.
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