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Prohibited-transaction checker

Answer seven questions to screen a self-directed-IRA transaction for the most common prohibited-transaction and disqualified-person traps. It’s an educational screen — not legal or tax advice.

The prohibited-transaction rules exist to keep your IRA at arm’s length from you and your family. Cross the line and the consequences are severe — a prohibited transaction under IRC § 4975 can disqualify the entire IRA as of the first day of the year. Use this to spot the common traps before you commit.

What are you directing the IRA to do?

Who is on the other side of the transaction?

Will you or a family member personally use, live in, or benefit from the asset?

Will you personally perform work or services on the asset (repairs, management)?

Will the IRA use financing to acquire it?

Is the asset a collectible, or metal below IRS fineness?

Will it be held in the IRA’s name (or a wholly-IRA-owned LLC), not your own?

Educational only. This page is general information, not individualized investment, legal, or tax advice. Rules depend on your account type, transaction, tax year, and circumstances — consult a qualified professional.

Prohibited-transaction checker

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