Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank

Re:Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank by enahs-sf on Thursday June 24, 2021 @06:15PM (#27624551)

Forgive my ignorance but I was under the impression this was startup founders standard operating procedure.

1. Form a C Corp

2. Grant founders shares at $0.000x/share

3. Early exercise all of said shares at basically nothing

4. Make 83(b) election to IRS

5. Take advantage of long term cap gains and qsbs

I’m sure plenty of folks in this forum have done similar things, the only difference is mr. thiel put it into his Roth account, essentially betting on himself and it paid off big time.

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Re:Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank by s1artibartfast on Thursday June 24, 2021 @07:08PM (#27625102)

The difference is 83b defers tax until you sell, while IRAs don't allow you to buy assets from yourself

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