2021 Proposed IRA Changes are Going to Hurt Millions of Self-Directed IRA Owners

$3.5 Trillion Build Back Better Act

Protect Your Self-Directed IRA and Investment Choices

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. 

Proposed IRA Changes 


The proposed changes have a direct and immediate impact for self-directed IRA owners. Here is a brief summary or the changes.

  • limits your choice to diversify your retirement savings outside of the stock market.
  • classifies certain assets and investment strategies in self-directed IRAs as prohibited
  • disallows IRA investments in entities in which the owner has substantial interest
  • forces you to sell certain existing IRA assets by a certain deadline
  • forces you to distribute from your IRA any investments that you are unable to sell before the deadline
  • eliminates the ability of suitable investors to participate in private capital-raising transactions through their IRAs
  • puts a cap on IRAs
  • forces distribution from large IRAs
  • prohibits new contributions to IRA balances exceeding $10 million
  • gets rid of mega-backdoor Roth IRA

For the full proposal and changes, click on the document Ways & Means Committee Proposal.

Eliminates Certain Investments And Forces Distributions or Sell of Assets

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:

  • IRAs holding any of the above investments would lose all of the tax advantages previously available to the IRA.
  • you will no longer be able to purchase any of the above investment types in your IRA.
  • you will be required to dispose of any such investments that you currently hold in your IRA by no later than December 31, 2023.

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.

IRAR Trust Company Joins Coalition to Help Protect Your IRA

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.

We Need You To Take Action >

Build Back Better Bill

UPDATE: 11/10/2021

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. 

Protect Your Self-Directed IRA, Business, Job, and Choice!

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.

  1. Download the letter(s). Send them to your United States House of Representatives and Senate. You can find the directory in the links below.
  2. Complete the form below. Tell us how this change will impact you personally. This message will be shared with coalition and congress.

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

Express Your Opposition to the Bill and Have Your Voice Heard!

Every statement on how this would impact you personally is important. YOU are their constituents— they need to hear from you.