Accounting Today features insights from Todd Kesterson, a certified public accountant and principal of family office services at Kaufman Rossin. The article delves into the complexities of investing in self-directed individual retirement accounts (IRAs), highlighting the significant tax advantages alongside potential pitfalls. It underscores the importance of choosing the right service providers and understanding the intricate rules to avoid costly mistakes.
Kesterson elaborates, “Then they liquidate the IRA. It’s done, and they dissolve it, and everything is distributed out and it’s a taxable transaction as well as an excise tax. It hurts everyone.” This underscores the gravity of adhering to IRS guidelines to prevent unintended financial consequences.
For investors, understanding these complexities is crucial. Self-directed IRAs offer unique opportunities but come with risks such as prohibited transactions and potential tax liabilities. Engaging with knowledgeable advisors ensures compliance and optimizes the benefits of these investment vehicles.
Read the full article in Accounting Today.
Want to explore how self-directed IRA strategies could affect your financial plans? Connect with our Family Office Services team to learn more.