Furnishing a Self-Directed IRA Purchased Rental
A few years ago I converted a few 401K's into one self-directed/checkbook IRA. I setup an LLC that facilitates the financial transactions on behalf of the IRA.
I recently purchased a vacation rental via the LLC, from which the proceeds will go back into the IRA account. My question:
Assuming all purchases are made via the IRA LLC, I'm assuming I can furnish the rental, and this would not be considered a "prohibited transaction"?
Thanks in advance.
Most Popular Reply
@Justin Windham and @Dmitriy Fomichenko. Thanks for the thoughtful answers. One of the reasons I love SD 401k's - a small error such as inadvertently providing a "service" doesn't blow up the entire account. PT's are penalized, but nearly as heavily as is the case in an IRA.