Imagine making a single mistake with your self-directed IRA that could cost you 50% or more of your retirement savings. The risk is real, and understanding the rules surrounding prohibited transactions is crucial to protecting your wealth. In today's episode, Rich Slenon explores the important issue of prohibited transactions in self-directed IRAs, sharing valuable insights on how to avoid these costly errors. Learn the rules, understand key risks, and ensure your IRA investments stay compliant with the IRS.

You’ll learn how to:

• Avoid self-dealing and conflicts of interest.
• Identify disqualified individuals and prohibited transactions.
• Understand the penalties of engaging in prohibited transactions.
• Safeguard your retirement funds by following key IRA regulations.
• Select the right self-directed IRA custodian and avoid costly mistakes.

What You'll Learn in This Episode:

(01:03 – 01:44) Recap on Disqualified Individuals and Prohibited Transactions  

(02:00 – 02:30) Prohibited Transactions with Disqualified Individuals  

(03:00 – 03:46) Self-Dealing and the Consequences It Brings to IRAs  

(03:48 – 04:40) Prohibited Transaction Examples: Vacation Homes and Rental Properties  

(04:48 – 05:39) Lending and Borrowing Rules within Self-Directed IRAs  

(05:43 – 07:35) Risks of Using IRA Funds as Collateral in Transactions  

(07:40 – 08:10) Restrictions on Lending and Borrowing Funds within IRAs  

(08:10 – 09:45) Penalties Incurred from Engaging in Prohibited Transactions  

(09:45 – 10:29) Selling Properties to Disqualified Individuals: What’s Not Allowed  

(10:29 – 11:35) Prohibited Services: Providing Renovations or Property Management  

(11:35 – 12:30) Clarification on IRS Rules Regarding Services to IRAs  

(12:40 – 13:35) The Prohibition on Real Estate Commissions for IRA Properties  

(13:35 – 14:45) Severe Consequences for Prohibited Transactions, Including Taxes and Penalties

(16:30 – 17:50) The importance of choosing the right custodian for your IRA  

(19:35 – 21:05) Networking and Education on the Cruise for IRA Investors  

Who This Episode is For

• Anyone with a self-directed IRA
• New investors in the self-directed IRA space
• Experienced investors looking to avoid costly mistakes
• Individuals seeking to protect their retirement savings from potential errors

Why You Should Listen
The potential consequences of prohibited transactions are severe and could result in a significant loss of your retirement savings. Rich provides crucial insights to help you navigate the rules and maximize the benefits of your self-directed IRA.

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