Jump to content

Investments allowed by SEP


Guest Sarah
 Share

Recommended Posts

Guest Mac Lewis

I bet not, as long as the SEP/IRA account owner isn't a principal in the bank, but the most expert here by far is Gary Lesser. Maybe he'll respond. Otherwise, you might call Resources Trust in Denver or another of the trust organizations that allow for individually-directed IRAs. Describe the situation and ask if their IRAs could make such an investment.

Link to comment
Share on other sites

Guest Steve Hample

I'll share Mac's bet. Lincoln Trust in Denver used to have a flexible attitude toward unusual IRA investments, such as real estate. Don't know if they are now part of Resources Trust.

Seems to me it is not a prohibited investment. Therefore it is permitted. However, the IRA custodian would be required to report an annual valuation and this might require an annual outside CPA or other professional opinon. Same concept applies to an annual real estate appraisal for IRA ownership of real estate. So if the client is willing to pay many times the normal IRA fee ... he / she could probably so invest IRA assets.

Link to comment
Share on other sites

  • 3 weeks later...

Assuming no existing ownership or other direct or indirect interests it should be okay. However, trustee (see other messages) will generally charge more than client is willing to pay. Also, an annual valuation may need to be performed if fair market value cannot be readily obtained. Although not mentioned in your facts, an option granted to an individual can not excercised in the plan. Also, if an employee/officer/sharehold of bank more information may be needed).

[This message has been edited by Gary Steven Lesser (edited 05-12-99).]

Link to comment
Share on other sites

  • 2 weeks later...
Guest Steve Hample

There's an article on this point in the new issue of Forbes. Don't have my copy handy, but assume the issue date is a few days from now, maybe 5/30/99. It's about the last article in the issue and gives phone numbers of trust companies. The conclusions are about the same as above, though in more exciting language and perhaps a bit less precise regarding gold bullion, but no matter.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...