Self Directed IRAs
NOON MEETING
THURSDAY, JANUARY 5, 2017
(Lunch served Noon-12:30 p.m.; Program 12:30-1:30 p.m.)
NORTHWOOD CLUB
6524 Alpha Road, Dallas, Texas
RESERVATION DEADLINE: WEDNESDAY, DECEMBER 28 (5:00 P.M.)
(PAYMENT MUST BE IN COUNCIL’S OFFICE)
SELF-DIRECTED IRAs: TAX AND ESTATE TRAPDOORS ABOUND
WARREN BAKER
Sponsored by BB&T
The use of “self-directed IRA” (and “Solo 401k”) structures to invest in real estate, private equity, and other “nontraditional” assets has grown rapidly over the past 10 years – and so have the potentially significant legal and tax problems these investment structures can raise, including: (1) invalidation of the account (resulting in complete retroactive taxable distribution and IRS penalties); (2) current tax consequences to the IRA itself, resulting from investments that are not automatically tax-deferred (“UBTI” and “UDFI”); (3) lack of liquidity and/or valuation mistakes causing required minimum distribution (RMD) problems during the IRA owner’s life; and (4) estate planning and post-death asset management, distribution complexities, and other long-term challenges. It is vital for professional advisors to understand these potential “landmines” before they occur and, at a minimum, provide clients with general advice that can avert significant legal and tax problems down the road. As “self-directed” retirement accounts continue to grow (in both size and importance to many Americans, particularly high-net worth individuals), a professional advisor can distinguish himself or herself from the crowd by understanding the unique issues that these accounts often create. This knowledge can also avoid the all-to-common professional attitude of “I don’t understand it, so you shouldn’t do it” mentality, which can lead to distrust between the client and advisors and/or the outright loss of the client relationship. As a bonus, this presentation will also cover the Rollover as Business Start-Up (“ROBS”) (i.e., 401k-owned C-Corporation) structure and how it differs from self-directed IRAs and IRA-owned LLCs. A ROBS can be used to start an operating business (in which the client is an employee) using a retirement account as a funding mechanism. In addition, this presentation will review the current (and evolving) federal regulatory environment (e.g., IRS oversight, potential legislative changes, etc.), which will affect all types of retirement accounts that hold nontraditional assets. Warren L. Baker, JD, LLM, is a tax and estate attorney with Fairview Law Group, PS in Seattle, Washington. Warren’s practice is focused on assisting clients in analyzing, structuring, and negotiating tax-efficient structures for complex investment and business transactions. Warren’s primary practice areas include: self-directed IRA compliance, formation, & consulting and estate and trust planning. Warren is a regular presenter and writer on several of the most cutting-edge tax law topics in the nation, including using retirement accounts to invest directly into non-traditional assets (e.g., real estate, closely-held companies, private lending).
There is continuing ed credit pending for this presentation. The program handouts are paperless. The handout will be available to download on the website (Document Library) a few days prior to each meeting. YOU may print the handout if you prefer to have a handout at the meeting.
Note: Paid membership dues do not include meals. To register for the meeting, complete the form below, enclose a check (payable to Dallas Estate Planning Council) for the respective amount (indicated below) and mail to: Dallas Estate Planning Council, P.O. Box 38553, Dallas, TX 75238-8553. You may register online with a credit card payment on the website: scroll down to the bottom of the page and register. If you need a receipt, print out the confirmation page.
PREPAID MEALS: Members who have already paid in advance for all meetings for the year MUST register so we will have a count for the number of meals to prepare. PREPAID MEMBERS MUST REGISTER ON THE WEBSITE - scroll down to the bottom of the page and register.
THERE WILL BE 10 MEALS AVAILABLE FOR WALK-INS ON DAY OF MEETING (FIRST COME, FIRST SERVE). ALL OTHER WALK-INS WILL BE “PROGRAM ONLY”. CREDIT CARDS ARE NOT ACCEPTED AT THE DOOR, CASH OR CHECK ONLY.
Member: $37 (includes meal and program); Guest: $60 (includes meal and program);*Member-Program Only: $25 (*ONLY MEMBERS may choose “program only” for $25; $20 Emerging Professionals – FIRST MEETING (includes meal/program-MUST be 40 years of age or younger or less than 5 years in respective discipline)
Name: ________________________________________
____$37 ___$60 ____$25 (Member-Program Only) _ __$20 Emerging Professionals-FIRST MEETING
E-mail: ________________________________________ Phone No: _____________________________________
Name: ________________________________________
____$37 ___$60 ____$25 (Member-Program Only) ____$20 Emerging Professionals-FIRST MEETING
E-mail: ________________________________________ Phone No: _____________________________________
WE WOULD LIKE TO THANK OUR MEETING SPONSORS: BB&T WEALTH, BESSEMER TRUST, CARTER FINANCIAL MANAGEMENT, COMMUNITIES FOUNDATION OF TEXAS, DALLAS JEWISH COMMUNITY FOUNDATION, DALLAS WOMEN’S FOUNDATION, JACKSON, WALKER, PARKLAND FOUNDATION, QUEST CAPITAL MANAGEMENT, SOUTHWESTERN MEDICAL FOUNDATION, THE CATHOLIC FOUNDATION AND TOLLESON WEALTH MANAGEMENT. IT IS THE SPONSORS WHO MAKE POSSIBLE THE SOCIAL EVENTS AND PROVIDING EXCELLENT SPEAKERS.IN ADDITION, WE WOULD LIKE TO RECOGNIZE THE PATRONS: BISIGNANO HARRISON & NEUHOFF, FMV OPINIONS, INC., HERITAGE AUCTIONS, GLAST, PHILLIPS & MURRAY, GOLDIN, PEISER & PEISER, MCKINNON PATTEN & ASSOCIATES AND RUSSELL TETHER FINE ARTS. THE PATRON PROGRAM PROVIDES ADDITIONAL FUNDS TO SUPPORT THE COUNCIL’S ACTIVITIES.
