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Updated almost 4 years ago on . Most recent reply
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Self Directed IRA funds - use for upfront costs of syndication?
I can't seem to find the answer to this question in my searches, perhaps someone has some experience or expertise with this question-
Can I use funds from my self-directed IRA for the upfront costs of a syndication in which I'm a sponsor, provided:
the funds go directly from the SDIRA to the syndication LLC, and
my SDIRA gets reimbursed directly from the syndication LLC?
I understand that self-directed IRA money can't be used to invest a syndication if I'm the sponsor because I would be earning money from the syndication - making it an active investment (in violation of IRA rules). There is also the rule that I can't lend myself money from my own IRA. But this is lending money (short term) for a syndication - a separate entity.
I would imagine I might have to charge the syndication LLC interest for this to be permissible under IRS rules?
Most Popular Reply
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- Solo 401k Expert
- Anaheim Hills, CA
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No, since you are the sponsor - your IRA can't invest into this project, period!
- Dmitriy Fomichenko
- (949) 228-9393
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