Brandon Spence Investor from Blythewood, South Carolina posted about 2 years ago Hi, I have a retired account through my last job (full time REI now) and want to transition the funds into a rental property. Can I use the funds in a self directed IRA to buy a property from an LLC that I own? The funds and the property value are very closely aligned and we thought it was a great fit for our needs. Brandon Columbia, South Carolina
Dmitriy Fomichenko Solo 401k Expert from Anaheim Hills, CA replied about 2 years ago @Brandon Spence ,you absolutely can not do that, your LLC is considered disqualified and not allowed to enter into any transaction with your IRA. Your self-directed IRA can invest in a property, just can't buy it from yourself (or any entity that you own).
Brandon Spence Investor from Blythewood, South Carolina replied about 2 years ago That's kind of what I thought, thanks for the quick response!
George Blower Retirement Accounts Attorney from Southfield, Michigan replied about 2 years ago @Brandon Spence No as such transaction would violate the following prohibited transaction rule. https://www.irs.gov/retirement-plans/plan-particip...
Ned Carey (Moderator) - Investor from Baltimore, MD replied about 2 years ago @Brandon Spence I will pile on too. NO
Brandon Spence Investor from Blythewood, South Carolina replied about 2 years ago I kind of already knew the answer but wanted to be sure. Thanks so much for the responses!