Investors with individual retirement accounts (IRAs) can now allocate to our equity investment offerings through a specialized fund structure.
Our equity investments often generate both ordinary and capital income. Depending on the income generated and other certain factors, there is a potential tax liability that can arise creating Unrelated Business Taxable Income (“UBTI”) for retirement accounts. Unless structured appropriately, this income can lead to negative tax implications for retirement accounts.
We’ve developed a fund structure for some of our equity investments that accounts for investors coming into the fund through a retirement account. This structure is specifically designed to help alleviate IRA investors from being subject to UBTI. As a result, distributions received by investors will be net of corporate taxes owed, removing potential liability for IRA accounts to pay tax on distribution upon receipt.
Target returns for the investors in the IRA-compatible fund will be lower than the taxable version. This is because the payment of any applicable corporate income tax is the responsibility of the entity rather than the investor, which reduces the distributable cash available to the IRA’s from the corporation.
Yieldstreet has partnered with Equity Trust, one of the largest self-directed IRA providers, to be the custodian for retirement accounts opened on Yieldstreet. Create an account to add Yieldstreet investments to your IRA with ease.
What's Yieldstreet?
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.