Proposed Tax Law
The Responsibly Funding Our Priorities Act as proposed by the Democrats Ways and Means Committee in the House will kill private placements in IRAs.
Sec. 138312. Prohibition of IRA Investments Conditioned on Account Holder's Status. The bill prohibits an IRA from holding any security if the issuer of the security requires the IRA owner to have certain minimum level of assets or income, or have completed a minimum level of education or obtained a specific license or credential.
For example, the legislation prohibits IRAs from holding investments which are offered to accredited investors because those investments are securities that have not been registered under federal securities laws. IRAs holding such investments would lose their IRA status.
This section generally takes effect for tax years beginning after December 31, 2021, but there is a 2-year transition period for IRAs already holding these investments.
Not only will you no longer be able to buy such investments, as worded you will have to sell those you already own within two years.