Can my wife's IRA purchase the private placement in my IRA at full value?

Can my wife's IRA purchase the private placement in my IRA at full value?

by David S. Markle, CPA | Jan 03, 2018

I own a private placement in my IRA. Can my wife's IRA purchase the private placement at full value (dollar for dollar) without running afoul of the disqualified person or self-dealing regulations of the IRS? In other words, would this be deemed an acceptable transaction?

Private placement in a self-directed IRA is a highly complex transaction, and it should be discussed with a qualified legal or investment adviser who has a detailed understanding of how they operate.

The question does not provide enough information to provide a definitive answer. If the private placement is an outside business (investment) where neither spouse has an ownership or management interest, I do not think it is an issue to both own the same private placement. If it is a transfer from yours to your wife’s IRA and it is valued by an outside independent party, there is probably not an issue. However, it sounds as though you’re afraid that this is a prohibited transaction, and I suggest you seek in-depth professional advice.

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Answered by: David S. Markle, CPA, is a CPA financial planner with Markle Wealth Management in Danielsville, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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