Self Directed IRA question for a Ninja / Expert

[Thomas Paszko]

Hello everyone,

My Uncle who is now deceased has left behind an IRA. The IRA for some reason had no named beneficiary so the estate is now the beneficiary / pass through. My father is the sole heir to the estate. The question is: can my Uncle's estate IRA lend me money for a real estate transaction as I am a non liner descendent?

[George Blower]

@Thomas Paszko

Thank you for providing more details. 

1. Correct that since your dad is also the beneficiary of the estate, he will not be able to loan the IRA funds to you since he is a disqualified party.

2. Since you father is also the beneficiary of the estate, the IRA still can not enter into a transaction with you even if he waits to payout the IRA by the end of the fifth year after your uncle's death.

On a side note, if your uncle passed away after age 70 1/2, the IRA can generally be distributed over his life expectancy which will help your father in spreading out the tax payments.