The House Ways and Means Committee recently released proposed tax legislation intended to pay for President Biden’s $3.5 trillion infrastructure bill. Several provisions severely restrict your freedom to self-direct the investments in your IRA. Continue reading to find out how you can protect your self-directed IRA.
Regardless of which side of the political spectrum you stand or how you feel about the proposed infrastructure bill, we believe the proposed restrictions of the investment options now available to middle-class retirement savers is not a prudent or appropriate way to pay for this or any other spending bill.
Despite the stated objective of only raising taxes on corporations and the wealthy, many of the proposed changes will restrict the ability of average retirement investors to grow their nest egg, eliminate a significant funding source for start-up businesses, and stifle innovation.
While many provisions are troubling, we would like to direct your attention to those specifically pertaining to retirement plans found in Part 3 on pages 10-12, Sections 138312 and 138314.