Top Ten "Dos & Don'ts" Of Self-Directed IRA Investing

TOP TEN

Things you should not do in Self-Directed IRA Investing

1. Don't create a prohibited transaction by having your IRA transact with yourself personally, your spouse, descendents, or ascendants (e.g. avoid self-dealing). Learn More
2. Don't engage in a transaction with your IRA and a third party's IRA on a "quid pro quo" or reciprocal basis in attempt to circumvent an otherwise prohibited transaction.
3. Don't deal with an entity that you or the some of your related disqualified persons own 50% or more.
4. Don't personally guarantee a loan that your IRA obtains.
5. Don't make personal (including disqualified persons) use of any asset your IRA owns.
6. Don't provide more than ministerial services (e.g., decision-making) to your IRA or IRA owned entity (e.g., no "sweat equity").
7. Don't take any personal compensation for any services provided to your IRA or as a result of a transaction that your IRA participates in.
8. Don't engage in any transaction that results in any personal gain for you or your disqualified persons (other than the benefit that the IRA receives (e.g., a guarantee of employment).
9. Don't co-invest personally with your IRA in any asset that you use as a loan collateral.
10. Don't take constructive receipt of any income from assets owned by your IRA and do not pay (personally) the expenses of assets held by your IRA.