Can I pay for Investment Club fees with SDIRA

[Justin Luedeke]

In the process of setting up a Self-Directed IRA and wondered if anyone has used the proceeds from the account to pay for the annual costs of an investment club (i.e. Motley Fool, Oxford Club, etc)?

Thanks!

[Dmitriy Fomichenko]

Justin, you can not pay investment club fees from your IRA, would be considered a Prohibited Transaction. You can only use IRA to pay the fees that are directly related to the investment that IRA owns. 

For example, your IRA owns a rental property, you get the property tax bill for this property. You have to pay that bill from an IRA because it is directly related to the investment of the IRA.

Now, let's say that before buying that investment property you decided to go and check it out in person. It is out of state so you incur expenses: flight, car rental, lodging, meals, etc. Those would be your personal expenses and can not be paid from the IRA.