shouldn't compaction be interactive with the user as to what context will continue to be the most relevant in the future??? what if the harness allowed for a turn to clarify the user's expected future direction of the conversation and did the consolidation based upon the addition info?
there definitely seems to be a benefit to pruning the context and keeping the signal to noise high wrt what is still to be discussed.
The killer is the "The bill also prevents investing in an entity in which the IRA owner is an officer." which is generally how the checkbook IRA is structured (IRA owner is the Manager of the single member LLC that is wholly owned by the IRA).
Sec. 138314. Prohibition of Investment of IRA Assets in Entities in Which the Owner Has a
Substantial Interest.
To prevent self-dealing, under current law prohibited transaction rules, an IRA owner cannot
invest his or her IRA assets in a corporation, partnership, trust, or estate in which he or she has a
50 percent or greater interest. However, an IRA owner can invest IRA assets in a business in
which he or she owns, for example, one-third of the business while also acting as the CEO. The
bill adjusts the 50 percent threshold to 10 percent for investments that are not tradable on an
established securities market, regardless of whether the IRA owner has a direct or indirect
interest. The bill also prevents investing in an entity in which the IRA owner is an officer.
Further, the bill modifies the rule to be an IRA requirement, rather than a prohibited transaction
rule (i.e., in order to be an IRA, it must meet this requirement). This section generally takes
effect for tax years beginning after December 31, 2021, but there is a 2-year transition period for
IRAs already holding these investments
No, the LLC is the same as the plan in terms of rules against prohibited transactions. Apple thought experiment works, but if you are personally generating revenue that moves the needle on a IRA investment that would be a no-no.
They can easily stop the next Pete Thiel by capping the appreciated IRA balance which they have in fact added a provision for. I don't comprehend the scare tactic of killing the self-directed IRA.
That may be the case but they are casting a very wide net. The numbers I've seen say there are on the order of 100k-1MM self directed IRA accounts that exist. Approximately 0% of which are lucky enough to be Peter Thiel and invest in founders stock of Paypal.
Self directed IRAs are commonly used with a wholly owned single member LLC to invest IRA funds into real estate related investments such as rental properties or many other types of private investments. The new proposed tax bill seems to remove the ability of the IRA owner to manage that LLC and effectively end the use of checkbook control IRAs.
there definitely seems to be a benefit to pruning the context and keeping the signal to noise high wrt what is still to be discussed.