barry312
Mar 21 2002, 04:37 PM
I'm wondering how I can invest in non-public companies with my ROTH. I am part of a consulting company (LLC) and would like to know if it would be possible for me to invest via my ROTH?
mbozek
Mar 21 2002, 10:23 PM
I presume that u are interested things like re, off shore cos, limited partnerships etc. Roth IRAs are subject to the same rules for IRA investments and all of the above are permissible IRA investments. However, most IRA custodians will not touch such invesments because of security laws and liability issues. You must inquire to find out what the investment restrictions are for a custodian. some custodians e.g., JPM-chase will allow u to invest in the above but u will have to pay a steep annual fee for the privledge.
barry312
Mar 21 2002, 11:20 PM
Thanks for the reply. Also, who much of the voting stock of a company can I won in my ROTH?
Thanks
mbozek
Mar 22 2002, 07:10 AM
50% or more ownership of all voting classes of stock or 50% of the value of all classes of stock is a prohibited transaction. See IRC 4975(e)(2)(G). Also an IRA cannot own S corp stock.
barry312
Mar 28 2002, 11:49 PM
Okay..I just want to make sure my understanding is correct. My ROTH can own up to 50% of a "C" corporation's voitng stock(assuming my family and I do not owan any voting shares).
However, whatif if I am an officer? Is the 50% reduced to 10%?
Thanks
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