Question

Self directed roth ira with llc received 1099 for income

Forum|Forum|3 years ago
January 17, 2023
3 replies
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I am looking at setting up a self directed Roth ira llc. I am a futures trader and receive a 1099 at the end of the year. Can I setup accounts to trade with inside my Roth llc and avoid all taxes?

Not A Product Question

A

Anonymous_

Employee

I will page @Mike9241. Stay tuned.

fanfare

Employee

You must use a broker that will allow all products in your self-directed tax-deferred account.

A Roth IRA belongs to an Individual, not a corporation.

@ccalley1

M

Mike9241

a Roth IRA LLC is doable, subject to the broker's discretion, but you are subject to all the rules for IRAs including having earned income to contribute, limitation on the amount contributed, taxed on distributions if withdrawn prematurely. it's an IRA and not a vehicle to avoid taxes on your trading income.

Critter-3

I think you have to wrap your head around the concept that an IRA is a separate entity from yourself. YOU may be a trader but the IRA is not. Within the SD IRA you can do all kinds of investing/trading/owning properties/owning LLCs but none of that is considered YOU personally. Now some folks have their IRA own their personal business and as an owner of a business the IRA would get tax reporting forms from them like a K-1 or dividends which are income to the IRA and most likely will require the IRA to file a form 990 and paying some taxes on the "unrelated business income". Please take the time to be educated on the pros and cons of a SD IRA ... one wrong step in one of these will void the entire IRA which results in an immediate and total distribution of the account.