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September 23, 2021
This is Jason DeBono, President of NuView Trust Company, sending you a quick message to let you know of some proposed law changes that may have a negative impact on your self-directed account.
We need you, as the self-directed account holder, to take action and help protect the integrity and investment choice that’s afforded to us through our retirement plans.
The Build Back Better Agenda that was just recently released by the House Ways and Means Committee has two specific items I want to talk about that we need to really focus on as self-directed account holders.
Section 138312 is proposing a prohibition on account holder status as it relates to investments inside IRAs.
This means that as a self-directed account holder, you will be prohibited from using retirement funds and investing in any investment that has any sort of accreditation standard to it. This can be at the federal and state law levels.
It also proposes that any investments held in these accounts may have to be unwound within two years. As many of you know, private investments can’t be unwelcomed that easily.
That could also create a major challenge and issue for a lot of investment sponsors handling investments that fall under this classification.
It also means that on a go-forward basis, many of the investments through crowdfunding platforms and other new initiatives that have been created through The Jobs Act and other opportunities would all be prohibited inside a tax advantaged retirement account.
I also want to point you to section 138314, which also impacts self-directed account holders.
What this section prohibits, or proposes to prohibit, is the IRA investment into an asset if the owner has a substantial interest.
For those of you that have used the checkbook control strategy, or are intending to, this would prohibit that in the future.
It would also force you to unwind any of these existing entities or strategies currently being used today.
So if your IRA wanted to invest 30% into an entity, it would be prohibited. It could also mean that your IRA can not invest into any entity that you personally have any affiliation with, beyond what the rules stipulate today.
While both of these sections have a lot of questions to be answered – and none of them are final – we need your help reaching out to congressional leaders and representatives.
We need you to let them know that taking away choice isn’t going to solve the necessary tax and budget problems they believe it will.
I would encourage you to reach out to your local representatives and congressional leaders as quickly as possible. We may be weeks, or slightly longer, away from decisions being made on what the final bill ultimately looks like.
I appreciate you taking action and helping your fellow investors protect the integrity of self-directed retirement accounts.
We appreciate your business and thank you for your attention to this matter.
Contact us directly with questions or ideas at: [email protected]
The Team at NuView Trust Company.