Indirect Benefits Rule

The purpose of the IRA is to provide for your retirement in the future. It's not intended to benefit you now. It's considered an “indirect benefit” if your IRA is engaged in transactions that, in some way, can benefit you personally—and this is NOT allowed.

Indirect Benefit Examples:

The following are just a few types of indirect benefit transactions that are NOT allowed in an IRA:

• Personally using IRA property —such as using real estate purchased through your IRA— as an office, personal residence, vacation home, retirement home, or office space.
• Receiving personal benefits from your IRA —such as lending yourself money from your IRA or paying yourself, or a company that you own, to do work on a home purchased by your IRA
• Using your IRA funds to buy a vacation home that you or your family will use