[CLBS] Erisa question

[Catherine Dullea]

Dear List Mates:

This isn't exactly a commercial or bankruptcy law question, but someone out
there may know the answer or who else might.

 

Client owns 45% of an LLC and is also the managing member.  He wants to make
a loan to the LLC through his IRA.  The IRA holder says it won't insure that
the IRS won't characterize the loan as a distribution under ERISA.  He can't
suffer that kind of a tax hit.  
Any golden pearls of wisdom would be appreciated.  They can find another
lender.

 

--Katie Dullea