Any issues investing in something through SDIRA and personal name at the same time?

Any issues investing in something through SDIRA and personal name at the same time?

Rental Property Investor · Perry Hall, MD · Member since 2016 · 586 posts · 598 votes

As the title says, I'm considering investing in the same debt fund using both personal funds and SDIRA funds. Provided I ensure I'm keeping capital segregated, signing subscription docs/contracts separately for each entity, and otherwise treating it like two completely separate investments by two completely separate entities are there any issues with doing such a thing?

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  • Michael PlaksPro Member
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @Jon K.:

    As the title says, I'm considering investing in the same debt fund using both personal funds and SDIRA funds. Provided I ensure I'm keeping capital segregated, signing subscription docs/contracts separately for each entity, and otherwise treating it like two completely separate investments by two completely separate entities are there any issues with doing such a thing?

    As long as it is a passive hands-off investment, and one part of your investment is not contingent on the other, I see no issues.

    Clarification: Contingency that I refer to would be, for example, when you cannot meet the  minimum investment requirement without combining your two sources of capital. Then there is potentially an argument about you drawing a personal benefit yada yada yada.
    • Rental Property Investor · Perry Hall, MD · Member since 2016 · 586 posts · 598 votes
      1y
      Quote from @Michael Plaks:
      Quote from @Jon K.:

      As the title says, I'm considering investing in the same debt fund using both personal funds and SDIRA funds. Provided I ensure I'm keeping capital segregated, signing subscription docs/contracts separately for each entity, and otherwise treating it like two completely separate investments by two completely separate entities are there any issues with doing such a thing?

      As long as it is a passive hands-off investment, and one part of your investment is not contingent on the other, I see no issues.

      Clarification: Contingency that I refer to would be, for example, when you cannot meet the  minimum investment requirement without combining your two sources of capital. Then there is potentially an argument about you drawing a personal benefit yada yada yada.

      Understood, this wouldn't be a partnership in anyway so the two entities would meet the minimum on their own. I appreciate the reply!

  • Brett SynickyPro Member
    Solo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 872 posts · 495 votes
    1y
    Quote from @Jon K.:

    As the title says, I'm considering investing in the same debt fund using both personal funds and SDIRA funds. Provided I ensure I'm keeping capital segregated, signing subscription docs/contracts separately for each entity, and otherwise treating it like two completely separate investments by two completely separate entities are there any issues with doing such a thing?

    Agree with @Michael Plaks

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