IRA Financial Group Is Proud To Announce That Partner Adam Bergman Authors Article on The Impact Of The Unrelated Business Taxable Income Rules and Financial Products

Forbes.com article written by Adam Bergman discusses how the UBTI or UBIT tax could apply to various non-real estate investments

Many self-directed IRA or solo 401(k) plan investors are unaware of the potential tax impact that UBTI/UBIT rules could have on a number of popular financial product investments, such as using margin to buy stock or options,”

Adam Bergman, President of the IRA Financial Group, a frequent contributor to Forbes.com, recently authored an article titled: What the Law Says About Unrelated Business Taxable Income In Non-Real Estate Investments. The article summarizes the potential tax implications for a retirement account, such as a self-directed IRA or Solo 401(k) plan, investing in non-real estate assets, such as options, commodities, buying stock on margin, etc.

According to Adam Bergman, the Internal Revenue Code permits retirement account investors to make a wide range of financial product investments using retirement funds. While, the majority of financial product type investments would not trigger the UBTI or debt-financed income rules, including mutual funds and options, transactions involving margin, however, would likely trigger the tax. The burden falls on the retirement account holder to make the determination of whether the financial product type transaction triggered the self-directed IRA UBIT rules and, if so, file the IRS Form 990-T.

“Many self-directed IRA or solo 401(k) plan investors are unaware of the potential tax impact that UBTI/UBIT rules could have on a number of popular financial product investments, such as using margin to buy stock or options,” stated Adam Bergman, a partner with the IRA financial Group.

Adam Bergman is the President and founder of the IRA Financial…

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