How about a CliffsNotes Version vs a cut and paste mishmash of info the avg slob doesnt understand.
Good idea.
Private placements are not typical IRA investments for the average Joe. So, this has very little impact.
Here’s how I see this:
Under current law, the rich can put their truly speculative investments, or shares and options on their own companies (as to which they have more control over subsequent appreciation than you and I have over the shares in our IRAs) into a Roth IRA.
Mitt Romney did this with parts of the companies Bain Capital acquired -— the “spinoff” -— and his IRA is now over $100 million. Peter Theil did it with Paypal shares and his IRA is now over $5 billion.
You and I (assuming you aren’t as rich as Mitt Romney or Peter Thiel) aren’t ever getting into that club.
Libertarians should not support one set of rules for the uber wealthy and another set for the rest of us. The “private placement” exception is a rule that allows self-dealing, something which I can never do in my IRA. For example, I cannot have my self-directed IRA purchase any property from me or any of my relatives, regardless of the price. It is a prohibited transaction that comes with serious penalties if you try it.
But Mitt could have his Roth IRA buy his spinoffs, and Theil could have his Roth IRA buy shares in the company he founded.
So the Dems get to virtue signal but watch as the final bill, if any actually passes, eliminates most of the described changes or adds new exception that allow the uber wealthy to continue doing what they have always been doing.
Short version : if you have n IRA you are screwed and soon to be impoverished.