[CLBS] Are loans owed to a Self Directed IRA exempt?

[Jon Wilson]

Situation of first impression, at least as to me.  Individual has a 401k
which is being hit hard by the down turn in the economy a few years ago and
at that time individual rolled his 401k into a Self Directing IRA (would be
penalized if he took funds out).  As a self directing IRA, he enters a
couple of loan agreements.  Some payments have been paid pursuant to those
loans back into the self directing IRA.  Not all of those loans have been
paid back and are in default.  Are those loans "exempt" under the
IRA/retirement account exemption or only the remainder of the self directing
IRA which has not been loaned?

 

Your thoughts..guidance are appreciated.

 

Jon R. Wilson

Attorney at Law

 

Wilson Law Offices, P.C.

4614 W. Emerald St.

Boise, ID 83706

Tel. (208)343-8400

Fax (208)424-5006

Email:   <mailto:jon at boiselaw.org> jon at boiselaw.org

 

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