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Updated almost 11 years ago on .
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SDIRA
Not sure if this is the proper forum, so please boot me over if I am in the wrong spot. But, I am thinking of creating an LLC with a around 100K from a SDIRA and I have an investor will match with 100K cash. I am wondering if we buy a property if he, who paid cash, can live in the property without violating any rules. Any input is appreciated.
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No, you cannot buy a house with your SDIRA and live in it. Well, you could, but that's a "prohibited transaction". The entire IRA account is considered immediately distributed and you now owe taxes and penalties on the total value of that account.