The House Ways and Means Committee recently released proposed tax legislation intended to pay for President Biden’s $3.5 trillion infrastructure bill. Several provisions severely restrict your freedom to self-direct the investments in your IRA.

Under these provisions, you would no longer be allowed to invest your IRA into private placements and single-member LLCs, regardless of your level of income or wealth. To make matters worse, these provisions require anyone currently holding these assets, which are often illiquid, to distribute or otherwise remove them from their IRA accounts within two years. This will result in significant tax consequences for many people, including low and middle-income investors.