Example 1: My SDIRA purchases property from me or my wife. This is prohibited. It doesn’t matter if it purchases the property in a “commercially reasonable” manner – i.e. obtain an appraisal. It is not allowed. Period.
Example 2: My SDIRA pays my daughter twenty-five dollars to mow the lawn on the property. My daughter is a family member. It is prohibited. The amount of money is irrelevant.
(B) Lending of money or other extension of credit between an IRA and a disqualified person
Example 3: I lend you $10,000 from my IRA.
Example 4: I personally guarantee a bank loan to my IRA.
Example 5: My IRA loans money to me.
(C) furnishing of goods, services, or facilities between an IRA and a disqualified person
Example 6: I buy a piece of property through my SDIRA and hire my wife to manage the property.
(D) transfer to, use by or for the benefit of a disqualified person of IRA income or assets
Example 7: My SDIRA purchases real estate in Ireland. The SDIRA rents out the property for most of the year. However, my wife and I use the property for one week twice a year. Even if my wife and I pay fair-market-value rent, this is a prohibited transaction.
(E) Act by a disqualified person who is a fiduciary whereby he deals with IRA income or assets in his own interest or for his own account
Example 8: I charge my SDIRA a fee to manage its stocks, bonds, mutual funds or other investments.
(F) receipt of any consideration for his own personal account by any disqualified person who is a fiduciary from any party dealing with the IRA in connection with a transaction involving IRA income or assets.
Example 9: My SDIRA purchase a vacation house is in Augusta. I am offered the use of a Wyoming condo in exchange for use of the Augusta property during the Master’s tournament.