I have an unusual question about Roth IRAs.
I have a small web startup company that currently has no income or real "value", because we are pre launch. The cost of the equipment + ip + trademarks + domains + other related expenses for the company is around 20k.
I don't have a Roth IRA yet but I want to start one this year. Can I put 4000 in cash in my Roth IRA (the max) and then use that to buy shares of this private startup (a Delaware S status corporation)? Could I buy (or sell to myself) 20k/4k = 20% of the company? If I then paid dividends or sold the company, would 20% of those proceeds return to me tax free?
*I* know that the value of the business is likely to increase dramatically in next couple years, but currently, 20k is probably as fair a measure of its value as any.
Any input?
I have a small web startup company that currently has no income or real "value", because we are pre launch. The cost of the equipment + ip + trademarks + domains + other related expenses for the company is around 20k.
I don't have a Roth IRA yet but I want to start one this year. Can I put 4000 in cash in my Roth IRA (the max) and then use that to buy shares of this private startup (a Delaware S status corporation)? Could I buy (or sell to myself) 20k/4k = 20% of the company? If I then paid dividends or sold the company, would 20% of those proceeds return to me tax free?
*I* know that the value of the business is likely to increase dramatically in next couple years, but currently, 20k is probably as fair a measure of its value as any.
Any input?