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Looked into that back when I was founding a startup - lawyer said it was a no-go due to self-dealing rules.
by ummonk 8y ago
Looked into that back when I was founding a startup - lawyer said it was a no-go due to self-dealing rules.
- gwern 8y agoYour lawyer was wrong, then. If you look around, you'll find coverage of people successfully doing their startup shares in their Roth IRA, and I know one billionaire personally who did that.
- sokoloff 8y agoIt’s a facts and circumstances thing. Yes, it’s possible to do. It’s not possible in some circumstances. (Not possible for S-Corp, not possible if the company will be buying assets [inc IP] from the IRA holder, probably not possible if the company isn’t profitable enough to pay a salary from operations [you can’t work for free for your IRA holding, it’s legally risky to use your IRA to funnel you current salary], etc) GP’s lawyer could very well have been right in advising that GP couldn’t do it under that specific set of facts.
- ummonk 8y ago>probably not possible if the company isn’t profitable enough to pay a salary from operations Yeah, that was definitely the case.