I have an IRA I would like to convert to a Roth IRA. It’s value approximately $350k with $50k basis. I will convert the dollars and pay the estimate $100k tax due from outside dollars.

I have $300k of REITs in self-directed PSP (non-prototype). I would like to “buy” these assets with the cash from the Roth Conversion. So the REITS would then be in the Roth Conversion account and my SELF-DIRECTED PSP (non-prototype) would receive the cash. Is this a prohibited transaction? The transaction would have NO effect on the ONE other participant in the plan because we self-direct our respective PSP accounts.

I believe this is an arms-length transaction. The PSP would receive the $300k…the FMV of the REITs.

The next question would be retitling the assets. I assume this would need to be done, but the REIT sponsors may be reluctant to retitle all 300 REITs. If they could not be retitled, could we have an agreement between the PSP and the Roth that all future dividends and redemptions be sent to the Roth IRA. Note that the Tax ID # for the PSP would be different from the social security # on the Roth.

Any suggestions or comments on how to accomplish this would be appreciated.