Guest SCUDDESLER Posted April 4, 2002 Posted April 4, 2002 Suppose an individual has funds in an IRA and wants to start a new business. The individual directs the Trustee to use the IRA assets to capitalize an S Corporation (the IRA is the sole shareholder). Three questions: 1. May an IRA hold S Corporation Stock? 2. If so, is the S Corporation's income UBTI? 3. Are there any prohibited transaction issues?
mbozek Posted April 4, 2002 Posted April 4, 2002 IRA is prohibited from investing in S corp stock- Rev. Rul 92-73. mjb
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