Will a firm like La Vida make it easier to diversify across different funds?

[anonymous69]

@EWebb strongly suggested to avoid SDIRA due to potentially huge penalties for violating IRC 4975 by acquiring a non-monetary benefit from the IRA account in the form of Portuguese residency.

Can an SDIRA trigger tax penalties relating to IRC 4975?

Hello, I’m the US tax attorney. In our common law system the application of the law to a specific situation happens in court. The tax and penalties on a $600k prohibited transaction are between about $690k and $970k. Information exchange happens automatically between the Portuguese financial institutions and IRS on accounts owned by Americans, and foreign accounts as well as SDIRAs have heightened audit risk. Questions about self-dealing are routine with SDIRA audits. The IRS does not have to pr…