Self Directed IRAs Restricted Transactions

BELLEVUE, Wash. - April 23, 2013 - PRLog -- One of the most valuable retirement accounts available to investors who like to make the decision on which investments they will pursue is the Self directed IRA. This unique account allows investors to finance transactions with the funds they have accumulated over years of hard work and savings through employee – employer contribution accounts that are designed to assist in developing a retirement future.

One of the largest restrictions in place with these accounts are the restricted persons, more commonly known as the disqualified persons. In most circumstances, dealing in business with any of these disqualified persons can and more than likely will lead to a “Self Directed IRA Prohibited Transactions.” This essentially means that the government or more specifically the IRS won’t let your IRA do business with these individuals because that opens loopholes that allow investors to benefit today from investments sponsored by their IRA.

These restricted persons include parents, grandparents, kids, grandkids, spouses, siblings, and custodians or other third party representative that have a judicial responsibility to the funds. It is important that all accounts remain at an arms length to these persons. Typically, the closes an IRA can get to a family member are cousins. Even businesses owned by a disqualified person or 50% or more are disqualified entities that the IRA cannot invest in.

Many business owners have build up and run their businesses to the point that they are ready to begin pursuing different opportunities. Now that they have the experience and expertise in businesses management, they know what it takes to make a business successful. With these skill and expertise they can use the funds in their self directed IRA, or rollover the funds from the 401(k) into a self directed IRA to begin investing in those people and opportunities that will lead to their retirement and to continual growth and development of the United States economy.

http://www.silverstone.net/self-directed-ira-llc-prohibit...