Indirect Benefits Rules

The purpose of the IRA is to provide for your retirement in the future. It is considered an “indirect benefit” if your IRA is engaged in transactions that, in some way, can benefit you personally today.

Indirect Benefit Examples
The following are just a few types of indirect benefit transactions that are NOT allowed in an IRA:
  • Personally using property held in the IRA: Using real estate purchased through your IRA— as an office, personal residence, vacation home or retirement home.
  • Receiving personal benefits from your IRA: 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.

Please Note: This information is presented for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with legal, tax, and accounting professionals.