Can I transfer rental property I own personally to my IRA?
No, this is considered a prohibited transaction. Your IRA cannot transfer property that you currently own. See IRS Code 4975 for information on prohibited transactions, disqualified persons, and self-dealing.
Is having an LLC in my IRA permitted?
Yes, it’s legal. The Internal Revenue Code doesn’t list the types of assets that you can invest in; it only states what you cannot invest in. The only two prohibited assets are life insurance and collectibles. Because an LLC is not a prohibited asset, it is a viable investment for your self-directed IRA.
Can I invest in a company that I work for?
Yes, as long as you do not own majority of ownership of that company, it must be less than 50%.
Can I borrow from my IRA?
No. This would be a prohibited transaction under Internal Revenue Code Section 4975.
What investments are not allowed in my IRA?
IRAs are prohibited from investing in collectibles and life insurance, as well as S corporations (the latter are prohibited under S corporation laws).