What are the advantages of investing in startups via IRA?
Using IRA/Roth funds for startup investments
Startup investments done through an IRA/Roth account requires a custodian that is not only willing to hold non-traded assets, but also has expertise in IRS regulations to maintain tax-advantaged status. Because alternative assets require special knowledge and handling, many people don’t offer that option, but we do through our partnerships.
Tax advantages of using IRA/Roth funds
Alternative asset investments held in an IRA/Roth benefit from the same tax advantages as publicly traded stocks, bonds and other assets. Tax on any capital gains generated by the investment is deferred until withdrawal from the account. An operating company held within an IRA is subject to annual UBIT tax on the net income generated. If it’s a Roth IRA, growth is generally tax-free.