Investing 401(a)

[Lennie Holland]

My current 401(a) is held by Mass Mutual and they tell me that I can't roll it over to anything else. It's embarrassing that I don't know more about my own retirement account but I'm here now so I have to figure out how to make it happen.

Let's say I do figure out how to roll it into a self-directed 401k/IRA, something.

It would be completely legal to then invest these funds into REI business like J. Scott's Lish Properties, invest in HML, invest in notes or any countless thing I wanted. If I don't touch the transactions and all profit is returned to the 401k/IRA, then there's not problem. Is this correct?

I'm going to assume for moment that this is correct. So let's just say I invest into Lish Properties and they flip/build a house that eventually gets sold to, by shear dumb luck, a distant retaliative of mine. Will I incur the wrath of the IRS or would I be fine because I was not involved in the process or is this just silly?