The term “Disqualified Person” includes virtually anyone having a direct or indirect relationship to the plan other than as a participant or beneficiary. Under Internal Revenue Code Section 4975, the principal categories of Disqualified Persons are:

  • The IRA participant (holder)
  • The IRA participant’s spouse
  • The IRA’s participant’s ancestors and lineal descendants (mother/father/daughter/son)
  • Spouses of the IRA participant’s lineal descendants (son/daughter’s spouse)
  • Fiduciaries of the plan (custodian or trustee)
  • Investment managers and advisors
  • Any corporation, partnership, trust, or estate in which the IRA holder has a 50% or greater interest

Note: According to Internal Revenue Code Section 4975, siblings, aunts, uncles, cousins, and friends are not included in the definition of Disqualified Persons.

Please contact one of our Self Directed IRA Experts at 800-472-0646 for more information.