Make Better Investments – Understand Self-Directed IRA Rules
The Self-Directed IRA Rules can be complex. Prohibited transactions, disqualified persons and knowing prohibited investments can seem daunting. That’s why at IRA Financial, our tax and ERISA specialists help you understand the Self-Directed IRA Rules to make better investments.
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IRA Financial Group has over a decade of experience helping investors self-direct their retirement account.
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Our tax and ERISA professionals have helped over 12,000 clients invest $3 billion in alternative assets.
IFG founder Adam Bergman is a leading voice on self-directed retirement & has authored 7 books on self-directing.
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Self-Directed IRA Rules
Direct Prohibited Transactions
This is a transaction between a disqualified person and his/her retirement account.
Self-Dealing IRA Prohibited Transactions
Again, this transaction involves a situation where an individual uses his or her IRA income or assets for personal gains.
Conflict-of-Interest Prohibited Transactions
This IRA prohibited transaction involves a disqualified person who is also a fiduciary and is connected to a transaction that involves the income or assets of the individual’s IRA.
A Prohibited Transaction are specific transactions that the IRS will not allow you to make with your qualified IRA. A prohibited transaction can involve investments, such as collectibles, or it can also involve an act between your plan and a disqualified person, such as renting out property to a family member.
Most Prohibited Transactions involve an act between your qualified plan and a disqualified person. You can remain compliant when self-directing your IRA and learn who/what is considered a disqualified person. Always avoid transactions with disqualified persons, as it may lead to tax consequences.
“What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group.”
“Adam Bergman…gets several calls a day from clients like McDermott looking to invest their retirement funds in real estate. ‘Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties.'”
“Jeff Brown…transferred roughly $50,000 from his workplace 401(k) to purchase homes to fix up and sell…He uses a self-directed IRA that he set up through IRA Financial Group in Miami Beach.”