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IRA Ownership in Privately Held Company


lisabroc

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We are working with a new 401(k) client and in reviewing the ownership structure, we see a number of IRA's listed as owners in the C-Corp. Is this permitted? The IRA's belong to employees (mostly with little or no ownership %). However, one of the IRA's belongs to  an officer/co-founder/employee who has 5% ownership in the company. Could this pose prohibited transaction violations?

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