The IRA Rescue Plan®

The IRA Rescue Plan®

Do you have money in an IRA or a 401(K) that is causing more tax problems than solutions? Are you worried that your investments are vulnerable to unreasonable market gyrations? Are you disappointed, perhaps disgusted, by the performance of your investments? Are you concerned that these investments are not safe from government encroachment and/or seizure?

Would you like to be able to invest your IRA or 401(K) investments as you see fit, and not according to arcane government rules and/or your bank and broker?

Would you like to easily and simply invest in land; anywhere?  Gold?  FOREX?  Options?  Offshore business opportunities? etc.?

The IRA Rescue Plan® may be the perfect thing for you.

STEP 1:    Liquidate your current IRA account, and roll-over the funds to a new Custodian (in the USA) that will agree to hold non-registered shares (not all banks and brokers will hold non-registered shares even though they are legally allowed to do so).

STEP 2:    Establish a specially structured IRA Investment Company that will be legally owned by your IRA Fund.  You will be the President/Manager/Director of the Company, and your IRA will be the shareholder. Since the company will be a “pass through” tax entity, and your IRA is a tax exempt entity, there will generally be no taxes on the income of the company.

STEP 3:    You instruct your new Custodian to buy shares in the newly formed IRA Investment Company as described above.

STEP 4:    You invest the funds of the newly formed IRA Investment Company as you see fit (subject to basic rules of business). Invest in foreign companies, gold and precious metals, international real estate, etc.

The entire structure is legal and designed to comply with a number of important Tax Court Rulings and Appeals Court decisions.  Best of all you remain in total control of the money (in fact you will have more control over the funds than you did before!).  By arranging for your IRA account to buy the shares in the new company under your control, the money in the IRA will then be free to invest as you see fit. You will even be able to give yourself “reasonable” compensation for services.

The package includes the formation of your IRA investment company, arranging the roll-over of funds to a new Custodian, and an Attorney Opinion Letter approving of the structure and transfer.

Freedom and Opportunity, combined with Safety and Security.  A very rare combination.


There are a number of programs available that allow you to withdraw funds from your IRA, but not all are the same. In order for a system to work it must comply with Swanson v. Commissioner. The case is very detailed, and provides a blueprint of how to comply. However Swanson does not describe every possible contingency that may be acceptable, although it does reject a few alternatives.

In the past we cautioned against using any system that deviated from the “safe harbor” defined in Swanson. The entire area was so new and untried that we believed it was just too risky to experiment. However, as time has passed it appears that some of the more novel approaches are in fact working just fine.

One system that we have now adopted involves the simple use of one LLC treated as a “pass through” tax entity. Since the IRA is exempt from taxes, there will be ZERO tax on the entity as long as all the company does is passive investments.

We feel confident that this system is safe and effective, but as always, when dealing with the IRS, there is always a chance that the IRS and/or the courts will change their interpretations of the law.

Are you interested in finding whether or not the IRA Rescue Plan® might help you?


Recent Posts

A Nevada LLC Should Not Be Blindly Trusted… Nothing Should

Some bad news for those who think Nevada is some sort of Magical Talisman against creditors:
“This Opinion once again illustrates, as have so many similar opinions before it, that it is not nearly enough that a person set up a labyrinth of legal structures to protect themselves, but that for the legal structures to hold up against creditors they must be respected as such. Here, the debtor set up a complicated structure that might normally have put off creditors, but then treated the structure willy-nilly, transferred assets around with little or no purpose or documentation, and then also — the Mortal Sin in creditor-debtor law from time immemorial — personally used and benefitted from the very assets that he claimed were not his.
We also again see the implicit application of the ancient legal maxim of delicatus debitor est odiosus in lege, which is translated as “the extravagant debtor is condemned in the eyes of the law”. In other words, a debtor who continues to live a wealthy lifestyle should get no sympathy from the court. So it is here, another case where the debtor claims that he has no money with which to pay their creditors, but maintains a wealthy lifestyle including the use of residences in both in Las Vegas and Southern California. Is it really any wonder that the courts frequently go out of their way to slam such debtors? Not paying one’s debtors while living it up is not only flipping The Bird to creditors, but is also doing the same thing to the Court which has an interest in seeing that judgments are enforced. Why do debtors have such a hard time seeing that?
The problem is fundamentally one of clients (1) having some common sense and knowing when they should live an austere lifestyle, and (2) being able to actually follow the legal structure that was created for them. An attorney can create the very best asset protection structure for a client, but if the client then starts ignoring the structure and treating all the assets as his own, then good luck defending that.”
Another problem with Nevada noted in the article: Nevada has a very thin record of court rulings compared with other states, and as a result tends to favor California law in the absence of Nevada decisions. This is never a good thing.
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