The title of this piece probably goes against everything you’ve ever been told or read about prohibited transactions and IRAs. That’s because (almost) everything you’ve ever been told or read about these transactions is incorrect. Calm down, control your breathing, it’s going to be OK. We’ll get through this together. I used to believe that all prohibited transactions disqualified an IRA also because that’s what I had always heard or read. That was before a very knowledgeable ERISA attorney corrected me and caused me to review the rules again in an attempt to prove him wrong. Instead, the rules proved him right.
Categories: Education and Resources, Investment Strategies, Retirement Strategies