When deciding on an investment, you may wonder if it’s okay to partner with an IRA. In general, it’s not usually wise to mix personal with IRA funds. The complicated rules set forth by the IRS may make co-mingling funds a difficult task. In the following, we’ll discuss the rules for investing with an IRA. […]
Many important self-directed IRA rules exist, but here we discuss two of the most important rules to know when using retirement funds to make an investment.
Checkbook Control The ability to invest retirement funds in a newly established special purpose entity that the IRA owns 100% of, and is managed by the IRA holder is legal by the Tax Court and IRS (Internal Revenue Service). It has been legal for over 18 years. However, only recently did the Tax Court confirm […]
The Internal Revenue Code does not describe what a Self-Directed IRA can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits Disqualified Persons from engaging in certain types of transactions, known as a prohibited transaction. The purpose of these rules is to encourage the use of IRAs for […]