SelfDirected.org/5

 

• Prohibited Transactions frequently lead to the loss of half – or even all – of the host Self-Directed IRA

• Bryan’s definition of Prohibited Transaction:  A prohibited transaction happens when the money or assets in the account are used to benefit you or your loved ones in the here-and-now rather than being a benefit to you exclusively during retirement.

• Prohibited Transactions are practically impossible to correct in Self-Directed IRAs… in Solo 401(k)’s, correction tends to be much simpler

• Common Examples:  Borrowing from your IRA, paying yourself a salary for maanging your account, taking commissions for the sale of a property purchased or sold by your IRA, etc.

• Sometimes Prohibited Transactions can be very subtle, such as if you allow a family member to use your IRA’s property for seemingly innocent reasons

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