using IRA funds to purchase a business

[Guest jigpsu]

I have a client who is interested in using IRA funds to help purchase a business. I am somewhat familiar with the prohibited transaction and UBIT considerations, but I'm sure someone has much more experience than I do. Would it be better to have the new company set up a one-man 401(k) plan that invests in qualifying employer securities or have a directed IRA hold the shares directly (via Swanson)? They want to use Guidant, and I'm skeptical of almost eveyone. Please point me in the right direction. Thanks.

[Kirk Maldonado]

use the search feature. this topic has been discussed ad nauseum.

[Guest jigpsu]

Thanks