Sure - there's no problem with valuing those shares at $0.001 in general, becaus... | Hacker News

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		machinebun on June 24, 2021 \| parent \| context \| favorite \| on: Peter Thiel turned a Roth IRA into a $5B tax-free ... Sure - there's no problem with valuing those shares at $0.001 in general, because there's not much that valuation matters for in the short term (eventually you will pay different taxes depending on the end result of your company). However, Roth IRAs specifically are a tax shelter and have contribution limits, so valuations matter a whole lot for them (difference in $0.01 per share vs $0.001 per share would be a difference of $500M vs $5B today). That's why I think illiquid (or non-market cleared) securities should not be allowed in Roth IRAs.

ska on June 24, 2021 [–]

> That's why I think illiquid (or non-market cleared) securities should not be allowed in Roth IRAs.

That + a cap on tax shelter would solve the issue, if it needs solving.

Perhaps also prohibit equity from any source where you aren't arms length.

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