4 ms·

I'm super happy that you found such a fulfilling role! Was wondering if you could elaborate on this a bit: > I set up a small company, so I could buy toys, an

I'm super happy that you found such a fulfilling role! Was wondering if you could elaborate on this a bit: > I set up a small company, so I could buy toys, and started following my own muse.

ChrisMarshallNY 4y ago
The Great Rift Valley Software Company[0] is a small corporation that allowed me to use a bit of my retirement money without tax penalties. [0] https://riftvalleysoftware.com https://riftvalleysoftware.com
- jmillikin 4y ago
  Could you expand on the tax side of that a bit? This is the first time I've heard of using a personal retirement account to pay business expenses without tax penalties, and I'm not finding any relevant hits on Google.
  - danesparza 4y ago
    I think you can do something similar with Real Estate Investment trusts (REITs) depending on your country of citizenship. More info: https://en.wikipedia.org/wiki/Real_estate_investment_trust#United_States https://en.wikipedia.org/wiki/Real_estate_investment_trust#U...
  - ChrisMarshallNY 4y ago
    It's a way of setting up a 401(K), that funds a corporation. Kind of a pain in the butt, and not many accountants know of it. There's a lot of fairly strict rules. You can't paint outside the lines. There's a company that specializes in this kind of thing. I don't really want to go into detail, here, but feel free to get in touch (my HN ID has contact info).
    - jmillikin 4y ago
      Ah, thanks, that helped locate some relevant search results! For those following along at home, the accounting term seems to be [[ Rollovers as Business Startups (ROBS) ]]. The IRS website has some unusually direct guidance[1][2] on tax compliance risks associated with ROBS. [1] https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project https://www.irs.gov/retirement-plans/rollovers-as-business-s... [2] https://www.irs.gov/pub/irs-tege/robs_guidelines.pdf https://www.irs.gov/pub/irs-tege/robs_guidelines.pdf
      - ChrisMarshallNY 4y ago
        Yes, that’s it. It’s a really good idea to use a company that specializes in this stuff. They take care of all the accounting and legal stuff. My own accountant won’t touch that stuff.
      - xhrpost 4y ago
        First I've heard of ROBS, thanks for posting. I would have assumed OP was talking about a Self Directed IRA, which is an interesting account that can do a lot more than hold securities. From my understanding your IRA can at that point own an LLC which then might hold other assets like actual real-estate.

I'm super happy that you found such a fulfilling role! Was wondering if you could elaborate on this a bit: > I set up a small company, so I could buy toys, and started following my own muse.

ChrisMarshallNY 4y ago

The Great Rift Valley Software Company[0] is a small corporation that allowed me to use a bit of my retirement money without tax penalties. [0] https://riftvalleysoftware.com https://riftvalleysoftware.com

jmillikin 4y ago
Could you expand on the tax side of that a bit? This is the first time I've heard of using a personal retirement account to pay business expenses without tax penalties, and I'm not finding any relevant hits on Google.
- danesparza 4y ago
  I think you can do something similar with Real Estate Investment trusts (REITs) depending on your country of citizenship. More info: https://en.wikipedia.org/wiki/Real_estate_investment_trust#United_States https://en.wikipedia.org/wiki/Real_estate_investment_trust#U...
- ChrisMarshallNY 4y ago
  It's a way of setting up a 401(K), that funds a corporation. Kind of a pain in the butt, and not many accountants know of it. There's a lot of fairly strict rules. You can't paint outside the lines. There's a company that specializes in this kind of thing. I don't really want to go into detail, here, but feel free to get in touch (my HN ID has contact info).
  - jmillikin 4y ago
    Ah, thanks, that helped locate some relevant search results! For those following along at home, the accounting term seems to be [[ Rollovers as Business Startups (ROBS) ]]. The IRS website has some unusually direct guidance[1][2] on tax compliance risks associated with ROBS. [1] https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project https://www.irs.gov/retirement-plans/rollovers-as-business-s... [2] https://www.irs.gov/pub/irs-tege/robs_guidelines.pdf https://www.irs.gov/pub/irs-tege/robs_guidelines.pdf
    - ChrisMarshallNY 4y ago
      Yes, that’s it. It’s a really good idea to use a company that specializes in this stuff. They take care of all the accounting and legal stuff. My own accountant won’t touch that stuff.
    - xhrpost 4y ago
      First I've heard of ROBS, thanks for posting. I would have assumed OP was talking about a Self Directed IRA, which is an interesting account that can do a lot more than hold securities. From my understanding your IRA can at that point own an LLC which then might hold other assets like actual real-estate.