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 or do business within 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 your family is the majority owner
• Leaders of companies your Self-Directed account is the majority owner