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Your financial security is our priority, and the relationship you have through uDirect IRA Services, LLC is very important to us. That’s why we want to make you aware that Congressional Democrats have proposed changes to the laws governing individual retirement accounts (IRAs) as part of their $3.5 trillion reconciliation package. These changes, if enacted into law, would have a direct negative impact on you and your ability to save for a secure retirement through an individual retirement account, like the one you have today at uDirect IRA Services.

How would the proposed legislation affect me?

The proposed legislation would prohibit IRAs from holding privately-placed equity and debt securities and other investments that require the IRA owner to meet certain minimum financial, educational or licensing requirements. For example, the legislation would prohibit IRAs from holding unregistered investments that are offered to accredited investors, like equity or debt investments in small businesses or investments in private funds. You may very well hold investments in your IRA today that would be prohibited by the proposed legislation.

The bill would also prohibit IRA owners from investing in (1) non-publicly traded entities in which the IRA owner and related entities (including the IRA itself) own more than a 10% interest or (2) any entity in which the IRA owner is an officer or director, regardless of ownership percentage. By way of example, single-member limited liability companies or any investment in an entity in which an individual is a director or officer could no longer be held in an IRA.

IRAs holding any of the above investments would lose all the tax advantages previously available to the IRA.

If the proposed legislation is enacted, you will no longer be able to purchase any of the above investment types in your IRA. Further, you will be required to dispose of any such investments that you currently hold in your IRA by no later than December 31, 2023, which could result in significant and previously unforeseen financial and tax consequences, including taxes and penalties associated with any assets that could not be sold and must be distributed from the IRA.

So What Can You Do To Stop This?

Make your voice heard. Contact your elected officials in the United States House of Representatives and Senate,

Not sure how to contact your U.S. Congressional Representative?                        

Go to:

Not sure how to contact your U.S. Senators?

Go to:

At uDirect IRA Services, as always, we will continue to advocate on your behalf for individual investor choice. Our CEO sits on the Board of the Retirement Industry Trust Association which is lobbying on behalf of your ability to invest in alternative assets of your choice.

If you have any questions about Sections 138312 and 138314 of the House reconciliation bill and how it will impact you, please contact your financial or tax advisor.



uDirect IRA Services staff is working both from home and from our offices in response to COVID-19. Rest assured, we are fully operational and ready to help with your retirement needs.