Now that you are aware of the option to invest in real estate using your self-directed IRA and can confidently identify a custodian and prospective investments, the last piece to consider is ensuring you clearly understand the limitations on IRA investment transactions established by the IRS and other applicable law. When selecting investments for your IRA, there are certain people and entities that you cannot do business with; since doing so could put the taxable status of your retirement funds in jeopardy.
Welcome back to the self-directed IRA mini-series. In this installment, we will help you identify the right custodian and begin to understand the rules around holding real estate in your IRA. Here is a list of questions you may find useful as you interview prospective custodians for your self-directed IRA: