The Blurred Lines of Self Directed IRAs: When DIY Home Repair Meets Tax Protected Risk A recent case involving a 58 year old master plumber who used his self directed IRA to buy and repair a rental property highlights a critical issue with tax protected retirement savings.
The owner's intention to fix the plumbing himself was likely motivated by a desire to save money, but it inadvertently put the entire account at risk.
The federal rules governing IRAs are designed to maintain a strict separation between the IRA and its owner.