Self directed roth ira with llc received 1099 for income

[ccalley1]

I am looking at setting up a self directed Roth ira llc. I am a futures trader and receive a 1099 at the end of the year.  Can I setup accounts to trade with inside my Roth llc and avoid all taxes? 

[Anonymous_]

I will page @Mike9241. Stay tuned.

[fanfare]

You must use a broker that will allow all products in your self-directed tax-deferred account.

A Roth IRA belongs to an Individual, not a corporation.

@ccalley1 

[Mike9241]

a Roth IRA LLC is doable, subject to the broker's discretion,  but you are subject to all the rules for IRAs including having earned income to contribute, limitation on the amount contributed, taxed on distributions if withdrawn prematurely.  it's an IRA and not a vehicle to avoid taxes on your trading income. 

[Critter-3]

I think you have to wrap your head around the concept that an IRA  is a separate entity from yourself.  YOU may be a trader but the IRA is not.  Within the SD IRA  you can do all kinds of investing/trading/owning properties/owning LLCs  but none of that is considered YOU personally.   Now some folks have their IRA  own their personal business  and as an owner of a business the IRA would get tax reporting forms from them like a K-1 or dividends which are income to the IRA  and most likely will require the IRA to file a form 990 and paying some taxes on the "unrelated business income".   Please take the time to be educated on the pros and cons of a SD IRA ... one wrong step in one of these will void the entire IRA which results in an immediate and total distribution of the account.  

[ccalley1]

A Roth is a way of avoiding taxes.  Not to argue...but I already have a Roth IRA through TD Ameritrade that I add at least 50% per year on the account without additional contributions (well at least over 50% during the last 5 years) and this account will be way over 7 figures by the time I hit 59 1/2....I'm 51 now.

No one seems to understand the question.  My understanding is that I can setup a self directed ROTH ira with an LLC owned by that ROTH.  The Question is whether or not 1099 income from futures trading for a prop firm on accounts owned by the ROTH would be taxed in any manner.    I know a SD Roth IRA can own an LLC and the scenario isn't listed in the prohibited transactions regs.  So.....

[Critter-3]

A ROTH is a tax shelter not a tax avoidance scheme   and as such the earnings in it are tax free when you make a distribution  if you follow the rules.  And it can be very lucritive especially if you invest in  real estate.

Now can you have a SD ROTH  own an LLC the answer is yes, it can be the sole owner or in a partnership. However please talk to your SD ROTH  plan administrator to be educated on if you would still need to file a form 990 and pay taxes on the "unrelated business" income.