Gudgergirl Posted October 2, 2014 Posted October 2, 2014 Individual lends money to company that invests in distressed properties. Individual's IRA also lends money to same company. Company issues a note and gives mortgage to each individuals and individual's IRA. Company is independent third party - not owned by individual or his family. Neither investment was conditional on the other (i.e. Company would have accepted only IRA investment without individuals' investment and vice versa) Did a prohibited transaction occur? To me it has the look of one, but I am having a hard time fitting it within IRC 4975 and ERISA 406. Any thoughts?
Lou S. Posted October 2, 2014 Posted October 2, 2014 From the look of it I would say no PT. They look like separate independent arms length transactions to me from the facts you describe. But IANAL nor are PTs my area of specialty.
Belgarath Posted October 2, 2014 Posted October 2, 2014 Gosh Lou - that's an unfortunate acronym! But amusing...
Lou S. Posted October 2, 2014 Posted October 2, 2014 Gosh Lou - that's an unfortunate acronym! But amusing... LOL dam lawyers
Belgarath Posted October 3, 2014 Posted October 3, 2014 I suppose you could make it quite uncomplimentary when responding to someone who isn't a lawyer, by combining texting shorthand, and say, "UANAL."
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