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.