Self Directed IRA Law & Legal Resources
Self Directed IRA Law changes frequently, and nobody is better equipped to keep you up to date than Tim Berry, SelfDirected.org's legal counsel and the top self-directed IRA lawyer in America. This section is designed to provide the resources you need to be well informed about the legal underpinnings of the self directed IRA so you can speak from a position of expertise with your advisers. Tim's contact information is below.
Self Directed IRA law is complex and unforgiving. Fortunately, federal statutes concerning self directed ira's don't change frequently. The same can't be said of regulations, advisory opinions and court decisions. Use this information to stay up to date:
Federal Statutes & Regulations
IRS Revenue Rulings
Department of Labor Advisory Opinions
Government Reports & Documents
Government Reports & Documents
The IRS has published many documents about IRA's and related issues which can be helpful. But remember: This is only the IRS' interpretation, and not the actual law. Also remember: Under the law, there's no real distinction between an IRA and a "self-directed" IRA, so this information applies to all types of individual retirement accounts.
Prohibited Transactions are the bane of the existence of self directed IRA owners. A single prohibited transaction can completely decimate an entire lifetime of savings and wise investing... even if you never intended to commit one in the first place. This is a topic that is required reading for all self directed IRA owners:
What is a Prohibited Transaction?
A prohibited transaction is any action involving your IRA that is expressly prohibited by the IRS. Some common examples include:
- Borrowing money from or lending money to your IRA
- Allowing your IRA to buy from or sell to any "disqualified person", including yourself and most of your family
- Purchase of prohibited assets (life insurance or collectibles)
- Using your IRA as collateral for a loan or other obligation
- Taking any action that directly or indirectly benefits you or any disqualified person rather than the IRA itself
Prohibited transactions are a serious problem when committed in an IRA and can have life-altering... Continue Learning Here.
What is a Disqualified Person?
Broadly speaking, "disqualified persons" for purposes of your self-directed (or any) IRA include:
- You - the owner of the IRA
- Family - your ancestors, descendants and their spouses
- IRA Account Professionals - your account custodian or anyone providing services connected to the IRA
- Related Entities - any business or organization on which you or a family member have substantive ownership or influence
"Disqualified Persons" is a critically important consideration. By engaging in a transaction that directly (or even indirectly) benefits a disqualified person, your entire IRA will be categorized as... Continue Learning Here
Tim Berry is a licensed attorney in Phoenix, Arizona who specializes in self directed retirement accounts, high-end asset protection strategies and bankruptcy. Tim is a frequent guest on Self Directed Investor Talk, America's #1 radio show and podcast for affluent self-directed investors. Many people - including Bryan Ellis of SelfDirected.org - consider Tim to be the top self-directed IRA lawyer in America. You can reach him here.