Jun

30

Self Directed IRA LLC Contribution Limits Eliminated

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I

am starting a small business and plan on paying as little taxes as is legal.
Instead of making a contribution from the taxable income into my Roth IRA I am buying a portion of that company with my self directed IRA LLC.

Whatever percentage of ownership that is acquired by my Roth IRA will bracket that same percentage of income as capital gains instead of schedule C income (self employment income).

I think that I’ll choose to sock away 30% of my income into my retirement account. So simply all I need to do is buy start up units in the company of thirty percent ownership.

Since it’s a new company we don’t know if the investment will pay off so the cost of owning that 30% will be minimal.

I plan to net well over a hundred thousand in that new start up. That means at least thirty thousand will be deposited into my self directed Roth IRA. It shows up as gain on the initial investment. That means 30 K of tax free income. This is all perfectly legal if everything is properly set up.

This is why I made the bold statement that the contribution limits for a self directed IRA LLC have been eliminated.

Now if I wished to make a contribution of $5,000 from the other 70% of that income generated from the new company I could still do it but I would have to pay taxes on that money first because contributions made into a Roth IRA and after tax contributions.

If you are getting up there in age and concerned about creating a much larger retirement account, then investing in your own business is an answer that can make a huge difference for your future.

Every small business in the country should do this. It would force government spending down and put the control of our lives, at least incrementally, back in the hands of the people and reduce the power of politicians to destroy our children’s future opportunity.

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