Please join Tom Anderson on the webinar Friday, March 13th, 1:00 PST, 4:00 EST. To register visit here.
Performing comprehensive due diligence on alternative investments such as hedge funds and private equity is essential to fully vet the risks associated with these asset classes. In recent years, the market has begun to realize the importance of performing not just investment due diligence but also operational due diligence on an alternative investment’s non-investment related risks.
This presentation will describe steps advisors can take to structure comprehensive due diligence programs as well as offer guidance regarding how to best provide clients with transparency into their due diligence processes.
3 responses so far ↓
1 Marco Taoatao // Apr 2, 2009 at 10:57 am
I just bought a single family home through my Pensco’s IRA account. I know that it is an investment and you cannot live in it but will there be a time when you can? I heard that when you retire that you can make it your residence, is this true? What are the requirements, if any?
Thanks, marco
2 admin // Apr 7, 2009 at 2:11 pm
Yes, at age 59.5 and five years from the date you establish a Roth IRA, and assuming you purchased the property with your Roth IRA, you can move into it without taxes, or penalties by taking a distribution of the property from your Roth IRA. The fair market (appraised) value at that time becomes you basis for taxes going forward. If you own your property through a traditional IRA or SEP IRA, you can move into it without penalty under the same rules (e.g., age 59.5, and having held the IRA or SEP IRA open for five years or more), you can move in and pay ordinary income tax on the appraised amount, but no penalties. If you don’t satisfy that exception, your property distribution will have to pay an additional 10% penalty on its value at the time of distribution. After age 70.5, if you hold property in your traditional IRA you will be subject to annual appraisals to support the minimum distribution calculation to determine how much you have to take out of your IRA that will be subject to tax. Or, alternatively, if you take it ou of your IRA via a distribution for the purpose of moving into it and satisfying your minimum distribution requirement, you will again pay ordinary income tax on the appraised amount, but no penalties. You may also take a property you intend to move into out of your IRA in stages (e.g. 20% of value each year for five years) for the purpose of flattening the tax impact. Once 100% is distributed to you according to whichever of the scenarios mentioned above applies, you may move into it.
Hope that is clear. Tom Anderson.
3 b cherry // Apr 28, 2009 at 5:49 pm
nice info
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