Ira disqualified person
Is an IRA beneficiary who is not officialy related to the IRA owner considered a disqualified person?
I want to purchase a vacation home in Mexico within my IRA and have my girlfriend rent it out from my IRA so she can go there a few months each year.
We are not married but she is the beneficiary of my IRA in case I die.
Is she considered a disqualified person?
If so, is there any other way to make this work so I dont have to make an IRA distribution to pay for the home?
I have both a Self Directed IRA, and a Self Directed Roth IRA.
Permalink Submitted by Dan Zaehring on Fri, 2022-02-18 19:28
I think perhaps the first question is investing out of the country. I believe the rule is still that “the indicia of ownership” must remain within the jurisdiction of the US. There are ways to meet this requirement but they are more complex than a simple investment purchase. A girlfriend is not a disqualified person, but if you spend time living in that home, you may be violating the requirement even though you yourself are paying no rent.