"J. Register" <jeff[at]qlsc.com> wrote:

- quote -

Well I seem to recall a similar type transaction involving
wholly owned corporations and Roth IRAs recently that were
not looked upon favorably.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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I need some input on a proposed transaction involving a
self-directed IRA that is being promoted by a consulting
firm. An LLC is established to invest in partnership. The
IRA will provide funds in exchange for 100% of the common
units. The IRA owner will provide funds in exchange for 100%
of the preferred units which provide for a 6% return.

I believe there won't be any risk of UBTI and the custodian
is agreeable. However, it is not clear to me if this is a
prohibited transaction.

Any thoughts?

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