Can you provide a startup seed capital through your Roth IRA?


1

Would I use funds from a Roth IRA to invest in a startup while deferring my taxes in the IRA as normal? Obviously I can't do that through my brokerage. Is there a way to do this offline?

Investing Seed Funding Startups

asked Mar 3 '14 at 19:15
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Teresa Sanchez
135 points

1 Answer


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If you're here in the US, yes you can! There are some requirements by the IRS in order to be able to do this though. It's not simply a matter of writing a check to the startup.

The key is rolling over the funds into a corporate retirement account (unless it's already in one). That permits you to invest in a private business.

I would suggest asking a CPA to get the nitty gritty details on how to comply with the IRS regulations on this.

answered Mar 4 '14 at 10:29
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Nishank Khanna
4,253 points

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Investing Seed Funding Startups