@sorensenmat: Understanding the prohibited transaction rules is key to using a self-directed IRA correctly. These rules don’t focus on what your IRA can invest in—they focus on who your IRA can transact with. If your IRA buys a rental property, who’s selling it? Who’s managing it? Who’s renting it? If it involves a disqualified person, it’s a prohibited transaction, which can lead to your IRA being distributed with taxes and penalties. So who’s disqualified? You are. Your IRA can’t buy property from you. It also can’t transact with your parents, children, spouses, or their spouses. Avoid these mistakes, or you risk losing your IRA’s tax-advantaged status.

Mat Sorensen

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Region: US

Thursday 30 January 2025 00:36:32 GMT