Learn The DOs And DON’Ts Of Using IRAs And Other Retirement Plans In Trading Activities (Recording)

30 Jul

Jul 30, 2013 at 4:30 pm EST


Host: Robert A. Green, CPA

Panelists: Employee Benefit Attorneys Richard Matta of Groom Law Group, and Louis Barr of counsel to GreenTraderTax.

Alert! Many traders may be triggering IRS excise-tax penalties for prohibited transactions including self-dealing, and/or UBIT taxes by using their IRAs and other retirement funds to finance their trading activities and alternative investments in problematic ways. One example of this type of trouble may be the “IRA-Owned LLC” or trust trading account. In many cases, traders also risk losing tax-exempt status on their retirement plans. This content is a serious warning to stay clear of trouble, not just a technical discussion of quirky rules.

Traders are increasingly tapping into their IRA and other retirement funds to finance their trading and investment plans. This trend has been growing since the 2008 financial crisis when many taxable accounts melted down, and proliferating rapidly this year.

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Please pass along to Star Johnson CPA and Darren Neuschwander CPA that I am very happy with the tax preparation services provided by Green NFH, and I think the fees I have paid are quite reasonable. As it turns out, I took two tax accounting classes in my MBA program in the mid-1980s and I used TurboTax to file my taxes for about 25 years prior to 2013, since during that period my taxes were relatively straightforward.  When I started trading options as my primary source of income I attended a presentation by Robert Green at Trader’s Expo in Las Vegas in October of 2012 and I realized then that there were significant advantages to creating an entity to qualify for trader tax status.  I also realized that my tax situation would be much more complicated, so that is why I started with Green NFH for the tax year 2013.