Self Directed IRA Rules, Regulations & Resources

 

self directed IRA rules

 

This is a resource page specifically focused on self directed IRAs. If you are looking for additional information supporting the information we have on our site, this is the place to find it.

 

 

 

IRS Publications - Retirement Account References:

IRS Publication 590-A - Contributions to Individual Retirement Arrangements (IRAs)

IRS Publication 590-B - Distributions from Individual Retirement Arrangements (IRAs)

IRS Publication 560 - Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)

IRS Publication 571 - Tax Sheltered Annuity Plans 403(b)

IRS Publication 598 - Tax on Unrelated Business Income of Exempt Organizations​

IRS Publication 3125 - An Important Message for Taxpayers with IRAs: The IRS Does NOT Approve IRA Investments

IRS Publication 575 - Pension and Annuity Income

IRS Publication 554 - Tax Guide for Seniors

IRS Publication 4118 - Lots of Benefits - Retirement Plans Life Cycle

IRA Publication 3998 - Choosing a Retirement Solution for Your Small Business

IRS Publication 4222 - 401(k) Plans for Small Businesses

IRS Publication 4333 - SEP Retirement Plans for Small Businesses

IRS Publication 4334 - SIMPLE IRA Plans for Small Businesses

IRS Publication 4460 - The Retirement Plan Products Navigator

IRS Publication 4587 - Payroll Deduction IRAs for Small Businesses

IRS Publication 4674 - Automatic Enrollment 401(k) Plans for Small Businesses

IRS Publication 4806 - Profit Sharing Plans for Small Businesses

Internal Revenue Bulletin: 2006-29 (Tax on Prohibited Transactions)

Topic 309 - Roth IRA Contributions

Topic 410 - Pensions and Annuities

Topic 411 - Pensions - The General Rule and the Simplified Method

Topic 412 - Lump Sum Distributions

Topic 413 - Rollovers from Retirement Plans

Topic 424 - 401(k) Plans

Topic 451 - Individual Retirement Arrangements​

Topic 557 - Additional Tax on Early Distributions from Traditional and Roth IRAs

Topic 558 - Additional Tax on Early Distributions from Retirement Plans Other Than IRAs

Topic 610 - Retirement Savings Contribution Credit​

Topic       - Prohibited Transactions

Topic       - IRA FAQ - Investments

Topic       - Retirement Plan Investments FAQ

Topic       - Rollover as Business Startups Compliance Project

Topic       - ROBS Guidelines

Topic       - ROBS Project Summary

 

IRA Tax Court Cases:

Summa Holdings V. Commissioner

Benenson family use a clever tax loophole to boost their retirement fortunes. The two brothers combined two separate tax strategies to improve on the existing tax code. The little known DISC strategy was combined with Roth IRAs to shelter taxes. Here is the appeals court ruling in favor of the Benenson brothers.

Swanson V. Commissioner

Interested in moving half a million dollars into your IRA in a very short time frame? Here’s a court case that allowed one person to do exactly that, and the IRS was even forced to pay over $50,000 in attorney’s fees for challenging him. See Swanson v. Commissioner, 1996, 106 T.C. 76

Ancira V. Commissioner

Want to invest in private companies with your IRA money but are worried about following all the intricate steps? Here’s a case where everything was done wrong, but the court still allowed an IRA to invest in a private company without any tax consequences.

DOL Advisory Opinion 88-18A

Here’s a ruling where an IRA owner had his IRA make a loan to a corporation owned 47% by him. Sure beats dealing with a bank.

Private Letter Ruling 8604089

Want to start building up a real estate empire? This ruling from the IRS shows how you can structure real estate deals in your IRA.

IRS Field Service Advisory 200128011

How about having your IRA own a business with the kids’ IRAs? This advisory letter from the IRS approved exactly that.

IRS Attack on Abusive Roth IRA Transactions​

It seems that the IRS is starting to believe that the Roth IRA is too good to be true. To that end they released this notice saying they believe that certain transactions between a Roth IRA and related parties will be considered as Tax Shelters.

 

IRS Revenue Rulings:

If an individual sells stock for a loss and causes his or her IRA or Roth IRA to purchase substantially identical stock or securities within 30 days before or after such sale, the IRS will disallow the individual’s loss on the sale of such stock as a wash sale.

An executor may elect under Code Section 2056(b)(7) to treat an IRA and a trust as qualified terminable interest property (QTIP), when the trustee of the trust is the named beneficiary of the decendent's IRA. The surviving spouse can compel the trustee to withdraw from the IRA an amount equal to all the income earned on the IRA assets at least annually and to distribute that amount to the spouse, and no person has a power to appoint any part of the trust property to any person other than the spouse.

 

Department of Labor Advisory Opinions:

DOL Advisory Opinion 1993-33A

A sale and leaseback arrangement between an IRA and the daughter and son-in-law of the IRA owner would be a prohibited transaction.

DOL Interpretive Ruling 2000-10A

Want to enter into a partnership with your IRA money and children? Here's a ruling from the Department of Labor saying if you do things right this could be possible.

Investment by a self directed IRA in a limited liability company pursuant to an understanding that the LLC will then invest in a corporation that is a disqualified person would constitute a prohibited transaction.

DOL Advisory Opinion 2006-09A

Investment by a self directed IRA in notes being offered by an entity that is over 87% owned by the IRA owner's son-in-law would be a prohibited transaction.

DOL Advisory Opinion 2009-03A

A brokerage firm requesting a client to allow a non-IRA account to provide indebtedness coverage for IRA account of the same owner would be a prohibited transaction.

 

This page is for reference only. We do not provide legal or tax advice. Please consult your attorney or tax advisor for your questions.