American IRA Publishes Guide to Prohibited Transactions and Self-Directed IRA Rules

ASHEVILLE, NC / ACCESSWIRE / November 2, 2019 / What are the limits of a Self-Directed IRA? While many investors understand that there is a wide degree of financial options within a Self-Directed IRA, there are also IRS rules and prohibited transactions of which investors need to be aware. Recently, American IRA-a Self-Directed IRA administration firm based in North Carolina-published a list of these rules at its blog. The post highlighted not only “disqualified persons,” but examples of potential prohibited transactions based on the IRS rules.

For example, the post noted which people might serve as “disqualified persons” within an IRA, and the list is more extensive than many might think. The list includes ascendants/descendants of the IRA holder, the IRA holder themselves, or the spouse of the IRA holder. Other disqualified persons might be business partners, depending on their relationship to the IRA holder.

Since many of the IRS rules and prohibited transactions center on transactions involving these disqualified persons, this forms the basis for understanding the limitations of an IRA, including a Self-Directed IRA. And because a Self-Directed IRA has more personal freedom for the investor, American IRA notes, it’s important for these investors to understand their limitations.

“A Self-Directed IRA opens a lot of potential avenues for investments,” said Jim Hitt, CEO of American IRA. “But there’s more to that story. Because there’s so much freedom involved, Self-Directed IRA owners should also be wary. Using retirement assets for personal benefit is a major problem. A good rule of thumb for Self-Directed IRA owners is to stick to keeping their retirement investments separate from their personal life.”

For example, notes the post, renting out a property held within a Self-Directed IRA to one’s son or daughter would be a prohibited transaction, as it would be using the asset for personal use or with a disqualified person.

For more information on using Self-Directed IRAs properly, visit the post at or call American IRA at 866-7500-IRA (472).

American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA.”



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