Prohibited Transactions and Disqualified Persons

What is the difference between a restricted investment and a prohibited transaction?

Restricted investments constitute what you cannot invest in with a Rocket Dollar account. Prohibited transactions relate to entities in which you cannot invest with or do business with in your retirement account.

IRS law restricts you from investing in or with...

  • Life insurance
  • Collectibles
  • S-Corp stock (the IRS needs to get their taxes!)

A prohibited person could include...

  • Yourself, aka self-dealing. You can't double dip benefit from the investment, only your IRA can!
  • Spouse
  • Children
  • Spouse’s children
  • Grandchildren
  • Parents and grandparents
  • Companies where you family is the majority owner
  • Leaders of companies your Self-Directed account is the majority owner