Self Directed IRA- Hire a non disqualified business

[Alicia Campbell]

Good afternoon, 

Can a self directed IRA hire an organization for services owned by a non disqualified person, who in turns hires a disqualified person? i.e. Can I hire a business who sub contracts with my son, if my son is not married or related to the owner?

Thank you!

[Carl Fischer]

@Alicia Campbell

It depends, if your son is not getting a personal Benefit from your IRA contracting with the company many clients and their attorneys believe it is ok. However, if your son received a benefit from your IRA contracting with the company such as a commission or bonus then it would be "prohibited". Example: If your IRA contracted for Internet service from Comcast and your son was a tower mechanic for Comcast and your IRA did not get any special rate because your son worked for Comcast it seems it would be ok. If your IRA got a special deal or price because your son worked for Comcast it would be prohibited.

I hope this helps make it a little clearer. If you want to discuss further feel free to PM me or email or call.