Can I lend some of my SEP IRA money to a business associate without breaking tax code?
I would be contractually charging them interest on the money of course and would be getting the money back after a very specific term.
Best Answer
511 points
songcon answered 2 weeks ago …
IRS prohibited SEP/ IRA to transact business with disqualified persons. Disqualified persons are:
You, the IRA owner
Ancestors (parents, grandparents, etc.)
Descendants (children)
Descendants’ spouses
Your spouse
The fiduciary of the IRA
Certain related businesses and trusts
Service providers, such as the custodians and brokers
Other than that you can deal business to the rest of the world. try to establish documentation to show that it's an alarm length transaction, market interest is charged etc . . .
There are 2 keywords that you need to do addtional research befeore talking to your accountant. They are: Prohibited transactions for SEP/ IRA and disqualified persons . . .
Hope this helps
