Self-Directed IRA – UBTI Rules

by | Aug 5, 2022 | Self Directed IRA

Self-Directed IRA – UBTI Rules




Learn more about UBTI rules and your self-directed IRA:
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Most investments you make are generally tax-deferred or tax-free in case of a Roth. However, some categories will incur the Unrelated Business Taxable Income (UBTI) tax. There are only three types of investments that can trigger UBIT:
1. Margin to buy stock
2. Nonrecourse loan to buy real estate
3. Investments in an active trade or business operated through a passthrough entity

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About IRA Financial:

IRA Financial Group was founded by Adam Bergman, a former tax and ERISA attorney who worked at some of the largest law firms. During his years of practice, he noticed that many of his clients were not even aware that they can use an IRA or 401(K) plan to make alternative asset investments, such as real estate. He created IRA Financial to help educate retirement account holders about the benefits of self-directed retirement plan solutions.
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