Self Directed IRA Rules
If you don't follow the rules set forth for self directed IRAs, you can risk the tax-deferred status of your account. This could lead to the disqualification of the IRA and severe tax consequences.
Official Documents Regarding IRS Rules…
- Prohibited Transactions Under the Provisions of the Internal Revenue Code - See the types of investments and transactions that are not permitted for self directed IRAs.
- Internal Revenue Code on Prohibited Transactions - View the Internal Revenue Code references to prohibited transactions with IRAs.
- Internal Revenue Code on UBIT and Prohibited Tax Shelter Transactions - View the Internal Revenue Code references to unrelated business income tax (UBIT).
...Explained in Plain English
- Prohibited transactions and investments - Learn which investments you cannot make in your IRA under IRS guidelines.
- Self-dealing rule - Your IRA cannot purchase investments from certain parties. Understand the most important self directed IRA investing rule.
- Indirect benefits rule - “Can you live in the vacation home your IRA owns?" No. Understand why the benefits of your IRA investments must go into your IRA, not to you personally.
- UBIT (unrelated business income tax) - Learn how and when, your IRA incurs tax because of leveraged investments or business income.