Author Topic: Roth Reciprocal Loans  (Read 2390 times)

jhoude

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Roth Reciprocal Loans
« on: November 14, 2016, 08:12:45 PM »
Hi...I'm new here so sorry if this is covered somewhere else but I'm interested in finding others to explore Roth Reciprical Loans.

I flip residential properties and operate 3 different LLC's...2 of which are owned by my wife and I's Roth IRA's...  My goal would be that all my flips would be under the Roth IRA's to avoid paying taxes on the gains.

My Roth LLC's grow by:
- gains we make on the flips
- the $53k annual contribution to an individual SEP, to which a Roth conversion is done and then a private placement out to our LLC.

Our 3rd LLC is a Non Roth LLC and has surplus operating income that I would love to put to the Roth LLC's but can't due to the IRS limitations.  Overall good, but not as good as it could be...

What if like minded investors gave each other Reciprocal Roth Loans???  We match up on loan amounts...say 500k - $1m and write reciprocating loans withe terms that are simple and secure...

I take operating income from my Non Roth LLC and loan your Roth Account the funds and you do the same back to me...

I know I'm no financial wizard and just have not seen anything online to suggest there may be some Peer to Peer lending for this scenario.

I would love to hear anyone's thoughts on this...thanks in advance...  RothJunky ::)