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How to Protect Yourself Against a Potential IRA Prohibited Transaction

In the case where a potential transaction involving an IRA could raise a prohibited transaction, establishing a separate IRA for any additional IRA funds in the IRA account that may have engaged in a prohibited transaction may prove to be a safe course of action.  The reason for this is because a prohibited transaction would result in the disqualification of the entire self-directed IRA, a segregation of any additional IRA funds so that the IRA assets that may have engaged in a prohibited transaction are segregated from the other IRA assets.  By doing this, the IRA holder would preserve the qualified status of the other assets in the IRA account if the transaction is deemed prohibited in the future.

To learn more about the self-directed IRA solution, please contact a tax expert at 800-472-0646.

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Posted in IRA Financial Group, Self-Directed IRA