Promissory Note as an IRA Investment
Is a $50,000 Promissory Note at 7% for $50,000 lent to a privately held entity an allowable investment in my Self Directed IRA (Vanguard is Custodian w/RMD in effect) that avoids income tax and prohibated transaction consequences given todays stock asset market wipeout?
Permalink Submitted by Alan Spross on Wed, 2009-03-04 19:00
Yes, as long as the privately held entity is not a “disqualified person” with respect to the IRA owner. Basically, the entity should have no relationship to the IRA owner to be safe.