Buying with IRA - Can my licensed Dad or Brother work on it?

Buying with IRA - Can my licensed Dad or Brother work on it?

Rental Property Investor · Elk River, MN · Member since 2016 · 102 posts · 10 votes

Hi BP!

Looking at buying with my IRA, (I am 36). Bottom line is I know I can't really benefit from this in any way shape or form until I am of 59 1/2 (I work in the personal finance arena for my job) .

My question is can my Dad or Brother do the work on my property, they are licensed contractors.  I know I can't rent to immediate family but can immediate family do work on my property?

Thank you!

Jeremy

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  • Rental Property Investor · Elk River, MN · Member since 2016 · 102 posts · 10 votes
    7y

    Also, My wife is a realtor.  I assume that is not an issue to use her to buy it?

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    7y

    @Jeremy Karja

    You have issues with both: your wife and father, they are considered “disqualified persons" to your IRA. Conducting business with disqualified persons will result in a prohibited transaction and will disqualify your IRA resulting in severe penalties. Your custodian did very poor job educated you so you need to do it yourself going forward as the responsibility is on you!

    Your brother is not so your IRA can enter into a transaction with him (as long as it is "arms length".

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