#3 Self-Directing your IRA, What are the Rules? | Directed IRA Podcast |

[@jasoncerrotalks2655]

Guys, thank you for the info and disregard the complaints about the banter. You’re both awesome. It amazes me that people feel entitled to negative feedback when they’re getting a college education for free. Thanks again guys for the amazing work you do

[@kariheidl9767]

If you do pay an insurance bill through your personal account by mistake and it should’ve been paid through the IRA how do you fix that?

[@ampthegamergod2223]

Can i use my funds in the ira/llc to help with a startup that my gf will own? And what happens if we get married, will it end up causing a prohibited transaction?

[@donireland6218]

Regarding rule #6, you said the IRA can't invest in a business that any prohibited person owns 50% more. What if the business is 100% owned by a group of people in which everyone owns 25%. No individual meets that 50% threshold. Or is it more about being 50% owned (in the aggregate) by prohibited persons?

[@MatSorensen]

That can work as long as two of the 25% people aren't disqualified to the IRA investing (e.g. spouses, etc.). There can also be self-dealing prohibited transaction concerns so I'd always suggest a consult when there are disqualified people over 10% . I also have a chapter in my book on self-dealing prohibited transactions that has cases of people at 30% where their retirement account later invests.

[@organicelliottwave2938]

Gentlemen, I haven't seen this addressed directly; can I trade futures in my SDIRA?

[@MatSorensen]

Yes, you can trade futures with an SDIRA.

[@andreawisner7358]

If a group of people, through IRAs and individually, invest in creating a retirement home ("Independent Living Facility"), can those same people then rent apartments at that Facility? What about if they sit on the Board of Directors of the Facility?

[@MatSorensen]

Those who use IRAs can't also then rent apartements from the facility. It is possible if they had a very low ownership (below 10%) and it wasn't planning from the beginning and they pay rent the same as all other tenants but I'd recommend a consult with an attorney.

[@jerrysweany278]

Rule #1. What if your IRA cannot pay for the entire investment? Does the retirement account get a percentage of the investment?

[@MatSorensen]

You can get a non-recourse loan to pay for the rest of the investment.

[@roberttomsiii3728]

You mentioned parents & grandparents, then went on to clarify ancestors are prohibited. lineal descendants? Children were mentioned and I am currently looking for clarity using google. Ctrl F just doesn't seem to cut it in tax code. ( 19 * 3 = 57 )

[@roberttomsiii3728]

What about aunt's and uncles, are they prohibited? Just how far off the the central trunk of the family tree do you have to get before it's longer prohibited?

[@themandownthehall]

@@roberttomsiii3728 aunts and uncles are OK. Lineal relations. Parents, grand parents great grandparents, kids, grandkids, etc are not alllowed. Ex spouse, aunts, uncles, cousins, etc are ok

[@MatSorensen]

Pg 30 of "The Self Directed IRA Handbook" has a great table laying out, Who is a disqualified person?

[@MatSorensen]

Aunts and uncles aren't prohibited.

[@MatSorensen]

Thanks for adding value!

[@iandrummond7608]

Can I buy a property from myself that I own free and clear?

[@MatSorensen]

No you can't that would be a prohibited transaction.

[@themandownthehall]

So here's a corner case question.. When I first heard of a self directed IRA, I had already agreed to purchase a property. I had to put the earnest money down before the IRA/LLC was created and thus it had to be personal funds. Isn't there the first transaction exception to that? I guess I could ask the lawyer to let me give them an LLC check for the money and have them refund back to personal? The asset is already purchased

[@renewhite2199]

Good question

[@themandownthehall]

@@renewhite2199 I found out that there is a transaction exception to that. Also, you can pay for your IRA fees out of your own personal pocket and not the checkbook of the IRA if you want to

[@jacynjames]

Haha That shirt definitely looks like BIF.

[@MatSorensen]

Haha, All I could see was Biff. The good news is he's never word that shirt again. :)

[@robphillipswvu]

I tried but couldn't get through the banter.

[@MatSorensen]

Thanks for your feedback!

[@anthonyj.4756]

I use to feel that way about many KZbin channels, but decided to use it as training to improve my listening skills. Focusing on hearing at least one thing, I can take away, despite the banter. The info is going through my mind and getting sorted..... ignore that trash, discard this junk, keep that gem. I credit Brandon Turner and Josh Dorkin of BiggerPockets, because they really use to grind my nerves with their banter and failed attempts to be humorous. I see it is true, that if we change the way we look at things the things we look at change.

[@glamlifemd4024]

You have good information but the banter at the beginning and in the midst of important points is annoying.

[@SL-ur7vt]

You spend 5 min talking non sense, get to the point