Can Funds in a IRA be used to Purchase Stock in a Family Business?

[packrat44]

Can a person use MM funds held in a traditional or a ROTH IRA to purchase shares in a family ranch/farm (which is in the latter stages of being converted from a C-Corp to a S-Corp) and hold those shares in their traditional/ROTH IRA?

 

[Sarah in SC]

Usually you will need to find a custodian prepared to hold alternative investments (harder and harder), then get them to approve the alt investment--which may be easier for what you describe than for ltd partnerships (my only experience) and you'll pay higher fees for the custody than in a regular IRA account.

 

[teejayevans]

Can a person use MM funds held in a traditional or a ROTH IRA to purchase shares in a family ranch/farm (which is in the latter stages of being converted from a C-Corp to a S-Corp) and hold those shares in their traditional/ROTH IRA?

Even if you can, why would you want to? You lose the tax benefits (LTCG rates/loss writeoffs).

 

[Z3Dreamer]

I agree with teejayevans but my friend google found many by searching for "non traditional ira investments". Looked into this about 5 years ago and it looked good. Did not do the transaction as I found alternatives.

 

[Texas Proud]

I am not going check for you, but I would check to see if a ROTH (or any IRA) can be a shareholder of an S corp....