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
- 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’s children
- Parents and grandparents
- Companies where your family is the majority owner
- Leaders of companies your Self-Directed account is the majority owner