Seeking an IRA expert to assist with strategy/letter

[Guest Jeff1]

I am hoping someone can refer me to an IRA expert that I can hire to write an opinion letter. I would like to purchase an asset in my IRA, but my IRA custodian requires that I provide such a letter before they will purchase the asset.

Thanks in advance.

Jeff

[John G]

You may get a better answer if you define the asset, the custodian, your investment experience and if you have any direct or indirect relationship to the asset.

[Guest Ken Bonus]

Jeff: I've written such opinion letters to IRA custodians from time to time, but as the other response suggests, having a better understanding of the facts is the first step. It also depends on what level of assurance the custodian is seeking. Most of us lawyers are not in the business of writing guarantees!

[Guest Jeff1]

Thanks for your replies. Indeed, I should have been more specific in my original post. There are several promoters who promote an arrangement in which an IRA forms an LLC or corporation owning 100% of the interest in the entity. The IRA appoints the IRA owner as its manager (but does not pay the manager a salary). This permits the IRA owner to more easily buy assets for his IRA.

My IRA custodian said that other clients use this type of arrangement, but they require an attorney to prepare the documents so that they can be comfortable that prohibited transaction rules are not violated.

[Guest Ken Bonus]

Well, such an arrangement can be quite valid and avoid the PT rules but it depends on what the corporation or LLC does or invests in.

[WDIK]

This thread may also be of interest to you, Jeff1.

[mbozek]

Why is it necessary to use an LLC to purchase assets for an IRA when the IRA owner has discretion to invest the funds under the custodial agreement?

[Guest Jeff1]

WDIK, thanks for the link

mbozek,

There are two primary reasons:

1) It provides a method for the IRA owner to tender prompt (immediate) payment for IRA investments, which may be necessary in circumstances such as buying investments at an auction

2) By consolidating IRA assets in the LLC, custodian fees are reduced, since many charge per asset.