May a self-directed borrow funds with which to invest?
I have a self-directed Roth account set up with a Trust company. An LLC was created as a disregarded entity where the member is the Trust company and myself as the beneficiary and contributor from a previous regular Roth account.
I would like my self-directed Roth to borrow funds with which it can make investments. At some point in the future the loan would be repaid to the lender.
Can this be done?
Permalink Submitted by Jose Morales on Mon, 2015-05-11 15:40
Any loan taken by an IRA must be a non-recourse loan. Any pledging of non-IRA assets as a guarantee or collateral for the loan will be a prohibited transaction.