Opening a Self-Directed plan will expand your investment options beyond the realm of traditional to include many non-traditional investments. The IRS does not specify qualified investments, however, the IRS prohibits the following types of investments:
- Life Insurance for yourself
- Metals (except Gold, Silver & Palladium Bullion)
- Coins (except US Minted Gold or Silver Eagle)
- Alcoholic Beverages
- Sub-Chapter S Corporations
Additionally, the prohibited transaction will generally involve the improper use of your plan by you or any disqualified person. A disqualified person includes any member of your immediate family (except siblings), employers, certain partners and fiduciaries. Your plan can also be disqualified for improper use of your Self-directed Account by you, your beneficiary, or any disqualified person for any of the following direct or indirect transactions:.
- Purchasing property currently owned by you
- Using your account as security on a loan
- Selling personal property to your account
- Purchasing Real Estate for present use (such as vacation or second home)
As with any investment you may be considering, please consult your tax professional prior to investing.
IRA Custodians for Alternative Investments | Business Directed Retirement Account
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