{"id":5362,"date":"2022-04-04T12:05:28","date_gmt":"2022-04-04T16:05:28","guid":{"rendered":"http:\/\/innovativewealth.com\/?p=5362"},"modified":"2022-04-04T12:04:13","modified_gmt":"2022-04-04T16:04:13","slug":"ira-prohibited-transactions-that-tax-your-ira","status":"publish","type":"post","link":"https:\/\/innovativewealth.com\/self-directed-ira\/ira-prohibited-transactions-that-tax-your-ira\/","title":{"rendered":"5 Common IRA Prohibited Transactions That Could Tax You"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA.jpg\" rel=\"attachment wp-att-5370\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-5370 size-large\" title=\"What you need to know about prohibited transactions\" src=\"http:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-1024x683.jpg\" alt=\"5 Common Prohibited Transactions That Could Tax Your IRA\" width=\"640\" height=\"427\" srcset=\"https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-1024x683.jpg 1024w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-300x200.jpg 300w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-768x512.jpg 768w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-150x100.jpg 150w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-630x420.jpg 630w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-420x280.jpg 420w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA-315x210.jpg 315w, https:\/\/innovativewealth.com\/wp-content\/uploads\/2016\/01\/5-Common-Prohibited-Transactions-That-Could-Tax-Your-IRA.jpg 1050w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>If you are like most investors, you probably have not heard of prohibited transactions. Prohibited transactions specifically apply to retirement plans such as self-directed IRAs or\u00a0401ks. It is estimated that less than 80% of investors fully understand the flexibility that a self-directed IRA offers, so most IRA account holders won&#8217;t have reason to come into contact with this rule. If you do use your retirement plan to invest in <span style=\"text-decoration: underline;\"><a href=\"http:\/\/innovativewealth.com\/wealth-management\/alternative-investments\/\" target=\"_blank\" rel=\"noopener noreferrer\">alternative investments<\/a><\/span>, then please keep reading.<\/p>\n<h2 style=\"font-size: 1.6em;\"><strong>What is a prohibited transaction?<\/strong><\/h2>\n<p>A prohibited transaction can be described as an improper use of your IRA account assets by a <strong><span style=\"text-decoration: underline;\"><a href=\"http:\/\/innovativewealth.com\/wealth-management\/self-directed-ira\/disqualified-person\/\" target=\"_blank\" rel=\"noopener noreferrer\">disqualified person<\/a><\/span><\/strong>. The term prohibited transaction in this case applies to retirement plans such as a self-directed IRA, or 401(k) The IRS\u00a0defines a prohibited transaction as:<\/p>\n<p>\n<strong><span style=\"text-decoration: underline;\"><a title=\"Blog- 5 Common Prohibited Transactions That Could Tax Your IRA\" href=\"http:\/\/innovativewealth.com\/self-directed-ira\/ira-prohibited-transactions-that-tax-your-ira\/\" target=\"_blank\" rel=\"noopener noreferrer\">Read More&#8230;<\/a><\/span><\/strong><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[14],"tags":[132,133,32],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Common Prohibited Transactions That Could Tax Your IRA<\/title>\n<meta name=\"description\" content=\"These 5 IRA prohibited transactions could tax you and you might not even know it. 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