Congress is in the final days of negotiating the Build Back Better reconciliation bill, which means we need you to ACT TODAY to protect the future of community capital investments. We are urging you to call and email your representatives to let them know that you oppose Sections 138312 and 138314 of the bill. 

As a reminder, these two tax provisions will limit the ability for grassroots investors to use self-directed IRAs and related vehicles to invest their retirement funds into community capital projects. If you’d like to learn more, Mat Sorensen has another article explaining how these provisions will punish everyday IRA savers and the local businesses where they choose to invest. 

Contact your representative and senators today!

Here are some critical points compiled by Mat Sorensen that you should include in your message:

  • Ask them to save your IRA and to oppose Sections 138312 and 138314 in the Build Back Better Act as those provisions take away investment choices for your IRA. 
  • There is a misconception in Congress that self-directed IRAs are only something the wealthy do and that these provisions will only affect the wealthy. It’s helpful to be straightforward about who you are and about the size of your account. They need to know that this bill is going to disproportionately hurt IRA savers with IRAs less than $1M. Here are some examples but it may help to put it into your own words and situation explaining how you’re not an ultra-wealthy person using their IRA to invest in hedge funds:
    • I’m a working American with a $X IRA just trying to get to an account balance I can retire on. Sections 138312 and 138314 in the House Tax Bill will harm my IRA and my ability to grow a retirement account that I can actually retire and live on.
    • I’m a pilot, nurse, retired firefighter, realtor, etc. (insert profession or job so Congress doesn’t think this is just CEOs, doctors, lawyers, and wealthy heirs), and I have diligently contributed to my retirement account. I choose to invest some of my IRA into real estate, small businesses, start-ups, and crowdfunding offerings. These provisions will force me to sell my assets prematurely for a loss or will force me to distribute them where I will be subject to taxes and penalties. Please oppose Sections 138312 and 138314 as they will cause drastic tax consequences for my IRA and they will take away future investment choices in my IRA that are important to growing my account to an amount I can retire on.
  • If you think the $10M cap is reasonable, say that. We’re not opposing the $10M cap in our efforts as it affects very few account holders who self-direct.

Thank you for taking the time to protect this critical component of the community capital infrastructure!
Contact your representative
Contact your senators
NC3 is building a network of community champions collaborating to democratize financial systems and create opportunities for empowered citizen investors to catalyze locally-rooted enterprises that drive both individual and community wealth and wellbeing.

Our members are a diverse group of community leaders, entrepreneurs, lawyers, financial advisors, investors, consultants, economic development professionals, philanthropists, concerned citizens, educators, and others collaborating to usher in an era of greater inclusivity and more widespread, shared prosperity.
Join the Coalition
Share Share
Tweet Tweet
Forward to a Colleague Forward to a Colleague
Link it Link it
Copyright © 2021 National Coalition for Community Capital, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Email Marketing Powered by Mailchimp