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Updated over 7 years ago on . Most recent reply

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Victor Marquez
  • SANFORD, FL
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Is this possible with a Self-Directed IRA?

Victor Marquez
  • SANFORD, FL
Posted
Can my self-directed IRA lend money to a company where I am one of the partners? If so, how? I have an real estate investment company with a couple of other partners and I was wondering if my self-direct IRA can lend money to this company. Is this possible without any penalty? Any suggestions will be greatly appreciated. Thanks!

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George Blower
  • Retirement Accounts Attorney
  • Southfield, MI
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George Blower
  • Retirement Accounts Attorney
  • Southfield, MI
Replied

@Victor Marquez

Quick answer is no.

The rules do not allow for one to lend his or her IRA or 401k to a company where the participant is is partner, manager, director or employee.

See the following page link: 

https://www.irs.gov/retirement-plans/plan-particip...

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