ira exit strategy
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IRA EXITSTRATEGY
Access Your IRA
How would you would like to get dollars out of your IRA without paying income taxes on the distribution?
IRA Exit Strategy
IRA
$
IRA Exit Strategy
IRA
TRANSFER $Investment specifically designed to generate “losses” equal to 99% of IRA Distribution.
IRA Exit Strategy
IRA
TRANSFER $Investment specifically designed to generate “losses” equal to 99% of IRA Distribution.
Both events must take place within the same tax year.
How it Works
IRA Distribution reported on your income tax return.
How it Works
IRA Distribution reported on your income tax return.
Offsetting Loss Equal to 99% of IRA distribution.
How it Works
IRA Distribution reported on your income tax return.
Offsetting Loss Equal to 99% of IRA distribution.
Tax Form K-1delivered within 60 days of year end.
Copyright © 2013, Brock & Associates, LLC. All rights reserved.
IRA Distribution
Taxable Event
Copyright © 2013, Brock & Associates, LLC. All rights reserved.
Schedule K-1
Tax-Deductible Loss
Copyright © 2013, Brock & Associates, LLC. All rights reserved.
Schedule E
From K-1to
Schedule E
Copyright © 2013, Brock & Associates, LLC. All rights reserved.
Form 1040
Offsetting Events
How it Works
Item You MBIG
Ownership* 40% 60%
Allocation of LLC ownership, profits, and losses.
*You must be an active investor in the LLC and keep records of time spent.
NOTE: MBIG holds unfettered right to purchase your 40% interest in LLC for preset number of shares in MBIG stock.
How it Works
Item You MBIG
Ownership 40% 60%
Tax Losses 99% 1%
Allocation of LLC ownership, profits, and losses.
*Tax losses are identified on form K-1 and reported on front page of form 1040.
How it Works
Item You MBIG
Ownership 40% 60%
Tax Losses 99% 1%
Profits (initial) 85% 15%
Allocation of LLC ownership, profits, and losses.
*Initial profit allocation applies until You have received your return of principal, plus six percent (6%) annually.
How it Works
Item You* MBIG
Ownership 40% 60%
Tax Losses 99% 1%
Profits (initial) 85% 15%
Profits (incentive)* 15% 85%
Allocation of LLC ownership, profits, and losses.
*Incentive profit allocation applies after You have received your return of principal, plus six percent (6%) annually.
Exchange
Specially-designed investment may be exchanged for stock in the “mother” company,
along with other shareholders.
Three Steps
IRA Specially-designed tax-advantaged
investment.
$
Three Steps
IRA Specially-designed tax-advantaged
investment.
Stock in “Mother” Company
$
STOP HEREYou Can
DesireIf you
Or…
You May Opt
ConversionRoth
for a
Roth Conversion
If the foregoing occurs within
30-45 Daysstock could be transferred to a Roth custodian
Roth Conversion
If the foregoing occurs within
30-45 Daysstock could be transferred to a Roth custodian
Roth conversion must be completed within
60 Days
Roth Conversion
If the foregoing occurs within
30-45 Daysstock could be transferred to a Roth custodian
Roth conversion must be completed within
60 Days
All future appreciation and income would be
Exempt From Income Taxes under provisions of Roth IRA
Convert
If the foregoing occurs within 30-45 days, the stock could be transferred to a trust company
that acts as a Roth custodian.
Roth Time Limit
The Roth conversion must be completed within 60 days.
With Roth Conversion
IRATax-advantaged
investment.Stock in Mother
Company
Roth IRATrust Company
$
No Future Tax
All future appreciation and income would be exempt from income taxes under Roth.
IRA and Roth Assets
IRA Roth IRA
Slow-Growth Assets High-Growth Assets
Fully Taxable Tax-Free Distributions
Must Take RMDs Included in Estate at Death
Double Taxed at Death Distributions May be Used to Transfer Offshore Tax Free
Deposits into Offshore Life Insurance Policy held by Offshore Asset Protection Trust.
Roth + Offshore
IRA Tax-advantaged investment.
Stock in Mother
Company
Roth IRATrust Company
$
Question
If you have a large-balance IRA, would you prefer that your heirs inherit more of it than the IRS?
IRA EXITSTRATEGY
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Way
BetterSleep
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