Father's SDIRA loan to My LLC?

[Greg LeDoux]

Quick question? Sorry if it's been answered already, but I'm short on time.

Can my Father's SDRIA loan money to an LLC of which I am a member?

Thank you for your time and expertise.

[Will Barnard]

Greg,
You are a disqualified party to your Father's IRA so you, or any entity you own would not be allowed to borrow from his IRA. However, you can do this IF you ask the IRS for permission. You must show that the IRA would be receiving a fair market interest rate compared to what your loan would be from other parties (get 2-3 quotes of comparable loans). Show that the IRA would benefit and that no funds would go to your Father personally.

If approved, your transaction becomes legal in the eyes of the IRS.