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Best friends Joel and Matt are the co-hosts of How to Money which is all about providing the knowledge & tools that normal folks need to thrive in areas like debt payoff, DIY investing, and crucial money tricks that will provide continuous help along your journey. We believe that access to unbiased and jargon-free personal finance guidance is more necessary than ever before. When you handle your money in a purposeful, thoughtful way that works for your lifestyle, you can really start living ...
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For more details on prohibited transactions download the Self-Directed IRA Handbook (look for chapters 4, 5, 6, and 7): https://directedira.com/the-self-directed-ira-handbook/
In this episode of the Directed IRA Podcast, Mat Sorensen and Mark J Kohler break down the single most important rule in the world of self-directed IRAs, the prohibited transaction rule. Before your IRA buys real estate, a private company, crypto, or any other alternative asset, you need to understand who your IRA can transact with and how to avoid accidental mistakes that can blow up your entire account.
Mat and Mark explain the three core varieties of prohibited transactions in a simple and memorable way, using real client examples along with their usual energy, humor, and clever comedy bits. You will learn why certain family members are off limits, what happens if you try to stay in your IRA owned Airbnb, how sweat equity can accidentally trigger a self dealing violation, and how to safely buy rentals or businesses in your retirement account with confidence.
The hosts also sprinkle in a series of fun “you know it is a prohibited transaction when” jokes that make the topic easy to remember and surprisingly entertaining. By the end, you will understand how to stay compliant, make smarter investment decisions, and unlock the real power of a self-directed IRA.
Perfect for real estate investors, business owners, and anyone using an IRA for alternative assets, this episode gives you the clarity you need to protect your account and maximize long term gains.
Chapters:
0:06- Welcome And Why This Matters
0:12 - Defining Prohibited Transactions
2:16 - What IRAs Can And Can’t Own
2:54 -It’s About Who And How, Not What
2:59 - Per Se Prohibited Transactions Explained
4:34 - Disqualified Persons And Family Traps
7:25 - After You Buy: Use And Benefit Rules
8:17 - Renting To Family And Self-Dealing
10:26 - Sweat Equity And Fixer Upper Pitfalls
12:49 - Managing Vs. Working: The 50 Percent Line
16:13 - Facts, Circumstances, And Case Law
17:49 - Practical Guardrails And Flexibility
19:36 - Resources, Book, And Professional Help
19:51 - Closing Remarks And Disclaimers
Directed IRA Homepage: https://directedira.com/
Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA
Book a Call: https://directedira.com/appointment/
Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com
Chapters
1. Prohibited Transactions in a Self-Directed IRA (You Know It's a Prohibited Transaction When...) (00:00:00)
2. Welcome And Why This Matters (00:00:06)
3. Defining Prohibited Transactions (00:00:12)
4. What IRAs Can And Can’t Own (00:02:16)
5. It’s About Who And How, Not What (00:02:54)
6. Per Se Prohibited Transactions Explained (00:02:59)
7. Disqualified Persons And Family Traps (00:04:34)
8. After You Buy: Use And Benefit Rules (00:07:25)
9. Renting To Family And Self-Dealing (00:08:17)
10. Sweat Equity And Fixer Upper Pitfalls (00:10:26)
11. Managing Vs. Working: The 50 Percent Line (00:12:49)
12. Facts, Circumstances, And Case Law (00:16:13)
13. Practical Guardrails And Flexibility (00:17:49)
14. Resources, Book, And Professional Help (00:19:36)
15. Closing Remarks And Disclaimers (00:19:51)
203 episodes
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