Operational Business inside Roth IRA (C-Corp)

Retirement Accounts and Strategies
1

Long time listener, first time caller :joy:

Edited for clarity & specific concerns:

I have been intrigued with self-directed IRA’s…just set up my account with Directed IRA.

I am not a big real estate fan (yet) and plan to direct my investment money to small business purchases in the near future. I would like to run these operational businesses inside a self-directed IRA. It seems like a no-brainer for great returns in a tax-free vehicle, after the c-corp tax of course (the “blocker corp” mentioned in Mat’s book). I do know I cannot personally take a salary from the business(es) inside the IRA, but here are my concerns before diving in:

  1. Can I still participate in day-to-day operations, as long as I receive no compensation?

  2. Is it prohibited to own part of the c-corp stock in the IRA and part of the stock personally?

I hear a lot about passive investing, but I’d love more information on operational type investing through IRA’s & possible pitfalls. Lots of opportunity here if done correctly.

Love the show! Thanks for all the information y’all provide!

2

Thank you so much for submitting this question. We answered it on today’s show, recorded 3/27/24. Please check it out there and please share with your friends, family and associates if you can. Thanks again!! Mark and Mat