Just so people are aware, high income individuals can’t use IRAs. This is a direct action against middle to low income individuals.
https://www.irs.gov/newsroom/new-income-ranges-for-ira-eligi...
https://www.irs.gov/newsroom/new-income-ranges-for-ira-eligi...
https://www.nerdwallet.com/article/investing/backdoor-roth-i...
https://www.forbes.com/advisor/retirement/mega-backdoor-roth...
https://www.propublica.org/article/lord-of-the-roths-how-tec...
This is direct action against rich people abusing a middle-class retirement account. What percentage of actual middle-class people are investing in "private placements and single-member LLCs"? I'd guess it's close to zero. And it probably should be. The whole reason governments create retirement accounts with special advantages is to make sure people are self-supporting in old age and don't need additional state support. That means they should be investing in a broad spectrum of low-risk stuff, not exotic, hard-to-value instruments.
>The backdoor Roth IRA conversion is a technique where investors who earn too much to contribute directly to a Roth IRA make after-tax contributions to a traditional IRA and then convert the contributed amount, and perhaps other money in the account, to a Roth IRA.
https://www.thinkadvisor.com/2021/09/22/what-to-do-if-congre...
Also, you can “use” an IRA after you contributed to it, so you could be high income now but contributed to an IRA when you weren’t.
https://www.irs.gov/retirement-plans/plan-participant-employ...
IANAL, IANA tax lawyer, TINALA