Do-It-Yourself IRAs Result in Litigation
Lawsuits targeting custodians of self-directed IRAs made the news this week, in a Wall Street Journal article titled “New Suits Over Do-It-Yourself IRAs.”
A self-directed individual retirement account (SIDRA) is an IRA held by a trustee or custodian that permits investment in a broader set of assets than is permitted by most IRA custodians.
SIDRA investment options may include tax lien certificates, promissory notes, real estate, businesses, and LLCs.
The Retirement Industry Trust Association reports that self-directed IRAs have grown rapidly in the past three years, and now make up an estimated 2% to 5% of the $4.6 trillion held in IRAs overall.
According to the Wall Street Journal, experts expect to see more SIDRA lawsuits, as regulators fight investment frauds involving older Americans’ retirement savings.
Securities Litigation and FINRA Arbitration
Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.
