Hi ,
The following is from an email sent out by Midland Trust regarding a proposed IRA Tax Law Change on September 20, 2021.
The House Ways and Means Committee in Congress has proposed changes to the laws governing individual retirement accounts (IRAs) as part of their $3.5 trillion reconciliation package. These changes, if enacted into law, would have a direct negative impact on you and your ability to save for a secure retirement.
The proposed legislation would prohibit IRAs from holding privately placed equity and debt securities and other investments that require the IRA owner to meet certain minimum financial, educational or licensing requirements. For example, the legislation would prohibit IRAs from holding unregistered investments that are offered to accredited investors, like equity or debt investments in small businesses or investments in private funds. You may very well hold investments in your IRA today that
would be prohibited by the proposed legislation.
The bill would also prohibit IRA owners from investing in (1) non-publicly traded entities in which the IRA owner and related entities (including the IRA itself) own more than a 10% interest or (2) any entity in which the IRA owner is an officer or director, regardless of ownership percentage. By way of example, single-member limited liability companies or any investment in an entity in which an individual is a director or officer could no longer be held in an
IRA.
IRAs holding any of the above investments would lose all of the tax advantages previously available to the IRA.
To learn more and find out how to contact your representatives regarding this proposed legislation, check out the top story in our Note & Real Estate News section below.
