What you need to know..

A self-directed IRA is an Individual Retirement Account (IRA) that you directly control and transfer into the investments of your choosing. This retirement account type allows alternative investments when saving for retirement.

If an account holder is found violating the rules for self-directed IRAs, it could put the account’s tax-deferred status at risk.

To steer account holders clear of any trouble, we’ve listed the biggest rules to remember below. If you'd like further information speak to one of our friendly account representatives. We are uniquely prepared to guide you through this process and help you avoid the pitfalls comon to new self-directed IRA investors.


Self-directed IRA rules to remember.

Self-Dealing

Self-dealing IRA transactions bring personal gain to the account owner before they retire. An example would be to use self-directed IRA funds to purchase a property that the account holder or a disqualified person in relation to the account holder owns.

Click here for more information on self-dealing.


Disqualified Persons

Who’s disqualified? Put simply, family, fiduciaries, and business partners. You cannot lend them money through your IRA, invest in their businesses through your IRA, or let them live in a real estate property that you purchased through your IRA.

Click here for a more in-depth look at Disqualified Persons.


Prohibited Investments

The IRS has outlined three investment types and rules that are prohibited inside an IRA. They are:

  1. Life Insurance policies
  2. Collectibles, such as artwork, antiques, certain coins, firearms, etc.
  3. Transactions with related parties (disqualified persons)

These types of investments are considered disqualified transactions, but what does that mean? What exactly qualifies as a collectible, and who exactly is a disqualified person?

Click here to learn more about Disqualified Transactions.