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by PaulHoule 1059 days ago
See this case study:

https://www.propublica.org/article/lord-of-the-roths-how-tec...

Peter Thiel managed to get a $5 billion IRA.

3 comments

I'm still not sure how buying stock in your own company isn't a Prohibited Transaction.

> [1]Prohibited transactions in a qualified plan

> 4. Any of the following acts between the plan and a disqualified person:

> [1] Disqualified person. You are a disqualified person if you are any of the following.

> 8. An officer, a director (or an individual having powers or responsibilities similar to those of officers or directors), a 10% or more shareholder, or a highly compensated employee (earning 10%-or-more of the yearly wages of an employer) of a person described in (3), (4), (5), or (7).

[1]: https://www.irs.gov/publications/p560#en_US_2022_publink1000...

It is, but as we have witnessed for decades, and intensely more so in recent years, the application of the law is inversely proportional to the wealth of the defendant.
A $5 Billion Roth IRA! Implying tax free withdrawals.
That trick may be illegal though.