Don’t attempt to go around the prohibited transaction rules by using cross loans with your IRA. It won’t turn out well.
prohibited transaction
Using the Prohibited Transaction Rules to Your Advantage
Image by chris_wilson via Flickr I’ve written in the past about the types of transactions that are prohibited in your IRA, and how these transactions are generally quite onerous if you happen to use one of them. In fact what happens is that your entire IRA becomes disqualified as of the first of the year in which the transaction occurred. So – if you’re inquisitive you might wonder: How could I use this to my advantage? It is possible to work this rule in your favor – but I don’t necessarily recommend it. I present this option here as an exercise of what could be done according to the rules. I learned this one from Natalie Choate, by the way, who you may recall I regard as a rock star in the world of IRA law. Working in your favor So, given that the rule against prohibited transactions requires that […]
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And if you’ve come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed “advisor’s advisor”.