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self directed ira help
I am considering rolling over a portion of a 401K from a former employer to a self-directed ira. I am researching and considering many different investments. My son, who is a business owner, is currently leasing space but would like to purchase the property he currently leases. Is there any way my self-directed IRA could participate in this type of deal, either by loaning to his LLC or sharing in the purchase of the building? I'm thinking not but would appreciate input or other ideas. Thanks! I am learning so much from this website!
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Unfortunately what you are looking for is not possible. Your son is a disqualified party to your plan, as would be the business he owns. There can be no direct or indirect benefit between a plan and a disqualified party.
A self-directed IRA can invest in real estate and that can be a powerful path for wealth building, but the transactions have to be 100% exclusively for the benefit of the plan at "arm's length".