Estimated reading time: 3 minutes
Many who are or are thinking about entering into the self-directed retirement plan world are concerned about having their IRA engage in a prohibited transaction. “I want to make sure I color between the lines,” as someone put it once. There are many benefits of coloring between the lines, meaning following the tax code. The tax code associated with retirement plans allows for many advantages that plain investing does not. Let’s focus on a couple of the features allowed under tax law, tax deferment and tax-free distributions. In investing, it is not only important to know how much return you can experience from the investment, it is also import to know how much of the return you get to keep.