Using SD IRA to partially fund an investment?

[JD H.]

Hello BP

I thought I would tap the wisdom of BP to get my question answered.

If I want to invest in a syndication deal but don't have the total amount needed in my IRA can I supplement it with funds from savings?

Thank you ahead of time.

[Jon Holdman]

Not easily. Theoretically its possible to create an entity, put in some IRA money and some personal money creating a partnership between you and your IRA. Then that entity invests in this deal. Speak to your custodian and see if they will allow this and can refer you to an attorney that can help set it up. But its easy to run afoul of the prohibited transaction rules.

Further, I'd be leery of investing too much of your nest egg in any one deal. IMHO, never put more than 10% of your money into any one deal. Further, if you don't have the knowledge and information that would allow you to step in and actually run the syndication, you probably don't want to invest in this deal. Been there. Done that. Lost money.