Partner on Title to Manage Rental Property

[Suzette Murray]

Question: 

Can a partner, using their own personal funds, who is on title as tenants in common with a partner that used SDIRA money to fund a rental property, manage and maintain the property for a fee? (Partner is licensed & qualified to do so)

I know it is considered a prohibited transaction for someone using their Self Directed IRA to manage, but unclear whether this rule applies to a partner that used their own Non Self Directed IRA funds.

I'd appreciate any advice from anyone that has knowledge in this area!

~Suzette

[Brian Eastman]

@Suzette Murray

So long as the partner providing management services is not a disqualified party to the other partner's IRA, that would not be an issue. The prohibition for the IRA would be for a disqualified party such as the IRA account holder, their parents or children, etc. to provide services to the IRA. As someone who has joint-ventured with the IRA, providing services to that IRA in managing the venture is no problem, nor is receiving compensation for those services.