A self-directed retirement plan can invest in most types of private offerings, including c-corps, LLCs, LPs, hedge funds, and more. When investing in private equity with a retirement account, the dividends from investments are paid directly to the retirement account and are either tax-deferred (traditional IRAs) or tax-free (Roth IRAs).
Investing in private equity within an IRA account has been available since 1974. However, the vast majority of investors are not aware of this option because traditional retirement account custodians limit investments to Wall Street stocks, bonds, and mutual funds. Midland IRA allows self-directed account investors the freedom to choose alternative assets, such as real estate and private equity investments, to build income.
Typically, these options are reserved to accredited and institutional investors who are proven to be financially fit enough to invest large amounts of funds over a long period of time without sustaining a substantial hardship if the asset proves to be fruitless. Funds are raised for things like investing in startup businesses, developing technology, gaining capital to improve the viability of an existing entity, and even to acquire an existing business.
Accredited investors are able to use their self-directed IRAs and other retirement plans to use these assets to build tax-sheltered income in their accounts. Midland IRA works closely with clients investing in private equity to facilitate the purchase(s) in compliance with current rules and regulations. Our ability to do this maintains the account’s tax-advantaged status and enables our clients the precious time to identify holdings they believe will increase their potential of building retirement wealth.
If you’re looking to take advantage of investing in private equity using funds from your IRA, call our team of IRA specialists today!
FAQs on Investing in Private Equity
- What is private equity?
- Why would I invest in private equity with my IRA?
- How do I invest in a private equity deal with my IRA?
- Are there any types of entities that are not allowed to be held in an IRA?
- If a group of my friends want to invest in the same deal, is there an easy way to do that?
- Who completes the Investor Questionnaire?
- What is Midland’s role after funding the investment?