Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo...
by divbzero on Friday August 27, 2021 @01:58AM
(#28324738)
Are there filing or record keeping requirements to being your own custodian? I imagine the process is somewhat more involved than labeling the stack of cash “Roth IRA”, or is it really that simple?
Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo...
by vmception on Friday August 27, 2021 @06:10PM
(#28333514)
Just be able to pass an audit
So people generally like a paper trail for that
Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo...
by mmd45 on Friday August 27, 2021 @08:31AM
(#28326966)
Is there a write up of how do be your own custodian? I'm paying a trust company annual fees to basically file irs form 5498 for multiple iras that only own an llc. I would pay money for information on how to do this.
Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo...
by divbzero on Friday August 27, 2021 @02:54PM
(#28331646)
I tried to look into this and as far as I can tell you cannot actually be your own custodian for IRAs. There are of course self-directed IRAs where you can hold non-traditional investments, but they still require a third-party custodian.
To your question, it is always better to have free and clear money with no restrictions, which means 0% tax now is better than locked up funds that you also wont have to pay taxes on in the future. Retirement products and trusts are judgement proof though sometimes even against ex spouses, not IRAs though), so if you have or expect to have creditors, better not to have assets in your name. Even better is to only have debt in your name so you can just tell people to get in line, or discourage them from ever bothering with the courts at all. Stuffing Roth IRAs are good for that.