Has anyone invested in a search fund using their IRA?

searcher profile

May 29, 2022

by a searcher from Purdue University in Kennett Square, PA 19348, USA

If so, how was your experience? Did you encounter any problems?

I would be interested to know if this is a viable source of funds and what there might be in terms of liquidation issues should it become necessary.

Thanks,

Alan

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commentor profile
Reply by a searcher
from Purdue University in Kennett Square, PA 19348, USA
Perhaps I should elaborate further on my original post/question. I have considerable experience working for SDIRA custodians and, more recently, with individuals that are looking to make private investments with their IRAs. However, I am familiar with only one investor who used his IRA to invest in a search fund. I was just curious to learn if there is some aspect of investing in a search fund (holding period, exit strategy, liquidity, etc) that makes them unappealing to SDIRA investors. Would welcome the opportunity for a private discussion.
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Reply by a professional
from New York University in New York, NY, USA
Hi Alan - The rules are extremely specific and cumbersome, and I recommend reviewing the IRS's documents on it (in which they basically tell you to not do it) before considering it. https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project
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