Using IRA/Roth Funds for Private Placement Investments

Private placements as an IRA/Roth account investment requires a custodian that is not only willing to hold non-traded assets, but also has expertise in IRS regulations to maintain tax-advantaged status. Because alternative assets require special knowledge and handling, many brokers don't offer them as an option

Tax Advantages of Using IRA/Roth Funds

Alternative asset investments held in an IRA/Roth benefit from the same tax advantages as publicly traded stocks, bonds and other assets. Tax on any capital gains generated by the investment is deferred until withdrawal from the account. An operating company held within an IRA is subject to annual UBIT tax on the net income generated. If it's a Roth IRA, growth is generally tax-free.


PENSCO offers highly personalized service making the custody process – and the potential to gain tax advantages – simple and straightforward for investors and their advisors.

PENSCO Trust Company, a leading private equity custodian, has been helping investors use their retirement account funds to invest in private placement, private equity, real estate, and other non-exchange traded assets since 1989. As the trusted custodian of over $10 billion in assets on behalf of more than 50,000 clients, PENSCO works with issuers, sponsors, financial institutions, and financial advisors, as well as self-directed investors who typically have a point of view about alternative investment opportunities based on their own knowledge or expertise.

Securities offered through US Capital Global Securities, LLC, member FINRA, SIPC.   BrokerCheck

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