Self-Directed Checkbook IRA – Disallowed Investments

Self-Directed Checkbook IRA – Disallowed Investments

​Just like certain investments cannot be held in an IRA, a Self-Directed Checkbook IRA owned LLC is prohibited from holding the following investment types.

Most Self-Directed IRAs have in house restrictions imposed by the Self-Directed IRA custodian. If you are “truly” a self-directed IRA LLC then the only restrictions are the ones that apply for IRAs in general.

Below are a list of restricted investments listed in IRC Section 408 (code for IRA’s) and prohibited transactions listed in Section 4975 (prohibited transactions for various retirement accounts). These rules derive from the official version of the Internal Revenue Code (Title 26) made available to the public by congress at:

Restricted Investments:

Life Insurance Contracts, Collectibles defined as:

  • Any work of art
  • Any rug or antique
  • Any metal or gem
  • Any coin or stamp
  • Any Alcoholic beverage

(Exception. Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion IRS Publication 590)