IRA Prohibited Transactions, Court Cases & Due Diligence


Overview
Discussion will focus on specific subjects such as in-depth analysis of court cases and IRS advisory opinions, abusive Roth transactions, and UBIT calculation and mitigation. The class will prepare participants to advise clients on how to get more out of their IRA accounts while still adhering to IRS rules.

Objective
The participant will gain in-depth knowledge related to IRS rules governing prohibited transactions including select legal decisions that affect IRA investing.  In addition, the participant will become familiar with account holder participation in due diligence for prospective asset choices.

Emphasis

  • Review of Swanson decision and the future of "IRA checkbook control."
  • The Rollins case and its impact on the definition of a disqualified person.
  • New court cases and advisory opinion letters.
  • Abusive Roth transactions.
  • Prohibited transactions: In-depth examples of where you can go wrong.
  • Detailed, interactive examples of debt-financed investment transactions; analysis of impact on operating investment return and impact on capital gains (UBIT).
  • Analysis of different strategies to reduce long-term impact of UBI.
  • Section 1031 exchange within an IRA.
  • The new Roth § 401(k) option.
  • How to analyze the "sophisticated clients" IRA investment strategy.
Prerequisite
Basic understanding in IRC Rules for Self-Directed IRAs

Preparation
No advance preparation required

Level of Knowledge
Basic

CPE Credit
2 Hours

Delivery Method  
Group Internet Based

NASBA Field of Study
Taxes

Author
Catherine Wynne