Sure a USA person can set up an IRA LLC, or a USA person can set up and LLC Offshore, and a USA person can open an Offshore Trust. The fact is that the companies that sell these products are creating them for USA customers about the same record pace they were pre-FACTA. Brilliant Internet marketing strategies, mostly using currency collapse or government seizure fear tactics, have gathered momentum and developed large membership bases to promote the cold-war style “secret agent” type IBC (International Business Company).However, once the offshore structure is complete the owner can’t purchase any offshore investments by means of either his offshore trust, his offshore LLC, or his offshore bank account – PROBLEM is – he can’t find an offshore bank account to open his account in because FACTA has shut him down.In comparison, as an example; if you are familiar with a Costco Membership Store….Anyone can walk into a Costco Store and fill up cart as high as he/she want but when they arrive at the Cash register they can not purchase any of it because (in this comparison) the USA person doesn’t have the Costco Membership Card.
We’ve had some people look at our Regulator Asset Protection Structures and they say; “oh this looks good and seems very simple” but they don’t fully realize how good it is unless they’ve previously attempted to open an offshore bank account or purchase any offshore investments. Even if they own an Offshore LLC, or IBC (International Business Company) which may have an existing offshore bank account, they still can’t buy any investments.
“In summary, The IRA Passive Custodian in the USA and the Luxembourg Active Custodian Investment Account eliminates the IRC Section 4975 problems of the “Checkbook” IRA LLC because you are managing the LLC but you are not acting as a Custodian.
The Tax Deferred Foreign Retirement Account is reported on FBAR and IRS Form 8938 is “Excluded” from Reporting by the IRS because it is an IRA Account.
The Foreign Retirement Plan Administrator is specifically excluded from reporting under FATCA Law. Therefore the Luxembourg Investment Account Custodian has no USA reporting or withholding requirement.
No withholding or reporting requirement is the reason the Active Custodian is willing to open an account for a USA person in Luxembourg.
There are no USA Person “Offshore” Fund Choice Restrictions and no PFIC nor FATCA issues.”
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