All Forum Posts by: Jeffrey Dixon

If your dad moved money to a Self-Directed IRA, he cannot loan you money from that IRA. That would be a prohibited transaction.

You cannot take a distribution without paying taxes and a penalty. Also, the IRA funds cannot be used for real estate, or any asset, you own personally. You could use the money to buy a new piece of real estate, not previously owned by you or a prohibited party to you.

If the money is in an IRA, you could open a Self-Directed IRA and use that to buy the real estate. You would not pay the taxes and possible the 10% penalty for taking a distribution. To open a Solo 401k, you need to be self-employed with your own business. You cannot employ full time employees with any business you own.

Chris is correct, there are no work arounds. 

You cannot make a loan to yourself from your own IRA.

 The IRS says you cannot get personal benefit from the investments. They classify staying in the property as getting personal benefit. 

 You cannot stay in the property even if you pay rent. Nor can you do any work on the property. 

If your IRA owns a property and the IRA has taken out a mortgage on the property, you cannot use personal funds for the refinance. That would be a prohibited transaction.

If you move the money to an IRA, you cannot take a loan from it.

Custodians are allowed to close accounts and distribute assets. It is doubtful that Equity Trust would agree to re-open it. You are allowed to put the assets back into an IRA as long as it accomplished in 60 days and you have not done this with any IRA in the past 12 months. You would need to talk to different custodians and see if one is willing to take the assets. They will need to be re-titled into your name and then re-titled to the new IRA custodian. The custodian may require to review the assets before they accept them. They may want to know why the assets were distributed.