LENDER ALERT: New Federal Build Back Better Act could restrict Individual Retirement Accounts
THE BUILD BACK BETTER ACT: PROHIBITION OF IRA INVESTMENTS CONDITIONED ON ACCOUNT HOLDER’S STATUS; PROHIBITION OF INVESTMENT OF IRA ASSETS IN ENTITIES IN WHICH THE OWNER HAS A SUBSTANTIAL INTEREST
Under a House Ways and Means Committee-drafted tax provision of the Build Back Better Act (the $3.5 Trillion Budget Reconciliation Bill currently winding its way through House and Senate committees), Individual Retirement Accounts (which, in most cases, would be self-directed IRAs) would be barred from holding any asset for which the investor must have, under SEC rules, “a specified minimum amount of income or assets, a specified minimum level of education, or … a specific license or credential” to invest in. IRAs holding such investments would lose their IRA status. Another House Ways and Means Committee-drafted provision would prohibit investment of IRA assets in entities in which the owner has a substantial interest…
