I know there will be many questions, and I will answer in comments, or give more information there, but I wanted to just get this posted first. So check back for more information and help in the next few days. IMPORTANT - For those of you (or any member of the IRA account) who need to take a Required Minimum Distribution from the account,
this must be done before January 10, 2020.
The RMD must be taken if you were 70.5 years old or older on June 30, 2019.
If that is the case, you should have received this email from IRA Services advising you that you need to submit the annual evaluation. Link to it here -
That email says not to submit "back up documentation." This is not the case for what you need to do to remove the IPX Promissory Note from your asset calculations.
Janet [firstname.lastname@example.org] in the compliance department kindly responded to my inquiry and has provided the following instructions. They are aware of the situation. Here is her reply, with my notes added as ***.
Thank you for this information. We were advised of this issue by an Investor and provided him with what we would need to write down the value of the LLC or write close it out as a loss. If Investors did not invest all their funds in the LLC with Daniel Butterfield, and they still have other investment or cash in the LLC, then they should provide us with the following: 1. *** submit a New value for the LLC (excluding the value of the investment with Butterfield) on our IRA LLC valuation form.
*** New value would be the balance of the checking account, and the value of the other assets. If you own rental property, remember that the “value” of that asset is the money invested from the LLC only (the down payment) NOT the value of the property. If you have never done an LLC valuation, contact your account representative or CPA for help. 2. Proof of the investment made from the LLC to Butterfield (I have heard that it was a promissory note) *** A copy of your promissory note must be attached. 3. Any document sent to Investor from the State regarding this issue
*** I advised her that no documents were sent directly to investors. You need to attach a copy of the full consent order and judgment. This is a link to that document -
https://www.dropbox.com/s/hlb61jfqdb5wg4k/acc%20consent%20order.pdf?dl=0 If Investors invested all or most of funds in the LLC with Butterfield, and now wish to close out the LLC provide us with the following: 1. Final valuation for the LLC ***use the IRA valuation form 2. Is there any cash left in the LLC checking account? Send cash back to IRA Services Trust Company to your account ***your custodial account 3. Send a copy of the LLC checking account statement. ***latest statement 4. Dissolve the LLC with the state in which it was formed and submit proof of the dissolution (dissolution certificate)
*** I am asking the AG’s office and IRA Services about this.
If the LLC is dissolved and any restitution is ever obtained, can they disburse those funds to you personally then? It might be that you can simply replace your IRA account as a member of the LLC with you personally. I would wait on this until we know for sure how to proceed. Until then, you can still submit a new valuation to reduce your RMD for 2019 and/or to update your account, and deal with closing out the account later once we have a definitive answer. 5. Proof of the investment made from the LLC to Butterfield (I have heard that it was a promissory note) *** A copy of your promissory note must be attached. 6. Any document sent to Investor from the State regarding this issue
*** Again, attach a copy of the full consent order and judgment.
Really important is that a valuation of your LLC assets MUST be verified and signed by a CPA or similar financial professional. You can also have your IRA account representative verify. This is something everyone needs to have.... a current account representative. OK, let the questions begin.
@azflycasters Contact my guy .... Michael Bosen www.cpagbg,com He knows all about this IPX investment situation. And he's close to you at Alma School and Baseline. He is also very good with the 990-T filings for your LLC.
Hello everyone. This is Evelyn Carey, I'm still a representative with IRA Services Trust Company through my own company, after I left IPX. Like Ann said, I've helped a few investors remove their losses from their yearly valuables.
#5 above that is acceptable to IRA Services as proof: wire receipts or copy of check showing the money going from your LLC to IPX in addition to your Promissory Note.
Thank you Ann.