Self-directed IRAs allow for tax-advantaged investing in private placements, notes, real estate and other various assets used in self-directed IRAs. In order to avoid penalties and additional tax payments on investments, investors must pay attention to particular regulations.
When using your IRA to invest, there are restrictions regarding whom you can buy from and sell to, as well as how the asset can be used. It's important to stay aware of these restrictions which include prohibited transactions and disqualified persons. Don't let your IRA investment sail without familiarizing yourself with the rules and regulations first. Below, you will find additional details about these restrictions: