--- title: Can my SDIRA invest with other partners, including myself? description: Help Center --- [Skip to content](https://support.aetrust.com/can-my-sdira-invest-with-other-partners-including-myself#main-content) English Show submenu for translations [More support](https://support.aetrust.com/kb-tickets/new?hsLang=en) [Customer portal](https://cs.aetrust.com/tickets-view?hsLang=en) [![American Estate & Trust](https://support.aetrust.com/hubfs/Website%20Assets/Logo%20Assets/logo-text.svg)](https://support.aetrust.com/?hsLang=en) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://support.aetrust.com/kb-tickets/new) - [Customer portal](https://cs.aetrust.com/tickets-view) - [Contact us](https://aetrust.com/contact) [Contact us](https://aetrust.com/contact) How can we help you? - There are no suggestions because the search field is empty. 1. [Help Center](https://support.aetrust.com/?hsLang=en) 2. [Investor Portal](https://support.aetrust.com/investor-portal?hsLang=en) 3. [Investment Questions](https://support.aetrust.com/investor-portal?hsLang=en#investment-questions) # Can my SDIRA invest with other partners, including myself? A **Self-Directed IRA (SDIRA)** offers investors the flexibility to participate in a wide range of alternative investments, including **partnerships, joint ventures, and co-investments**. However, strict IRS rules govern these transactions, particularly when they involve the **IRA owner or other disqualified persons**. Understanding the regulations surrounding SDIRA partnerships is crucial to ensuring compliance and maintaining the tax-advantaged status of your account. ### **Investing with Other Partners** Your SDIRA can **co-invest** alongside other individuals, entities, or IRAs in various types of investments, such as: - **Real estate partnerships** (e.g., multiple investors pooling funds to buy a property) - **Private companies** or **LLCs** (e.g., forming a new business with other investors) - **Syndicated deals** (e.g., investing in a private placement with other accredited investors) - **Joint ventures (JVs)** (e.g., your IRA and another investor funding a single project) As long as **the partnership is structured correctly** and does not violate IRS prohibited transaction rules, co-investing is allowed. ### **Can My SDIRA Invest with Me Personally?** **No.** Your SDIRA **cannot** invest **with you personally** or with other **disqualified persons**. This means your IRA **cannot co-invest in a deal where you personally own an interest or hold control**. For example, your IRA **cannot**: 🚫 Buy a rental property **with you personally** as a co-owner. 🚫 Invest in an LLC **where you or a disqualified person own 50% or more**. 🚫 Loan money to **yourself, spouse, or children** as part of an investment. ### **Who Are Disqualified Persons?** The IRS prohibits your SDIRA from engaging in transactions with **certain individuals or entities**, including: - **You, the IRA owner** - **Your spouse** - **Your lineal ascendants or descendants** (parents, children, grandchildren) - **The spouses of your children or grandchildren** - **Any entity (business, trust, partnership) where you or a disqualified person own 50% or more** - **Fiduciaries or service providers to your IRA** Investing **alongside** or entering into transactions **with these individuals** could trigger a **prohibited transaction**, resulting in **severe tax consequences** (more on this below). ### **Structuring an SDIRA Partnership Correctly** If you want to invest with **non-disqualified persons**, proper structuring is essential. Here are key guidelines: ### **1. Initial Investment Must Be Proportional** If your IRA partners with others, **each investor must contribute funds proportionally at the start**. The IRA and other investors **cannot adjust ownership percentages later** without violating prohibited transaction rules. ✅ **Example of an Allowed Investment:** - Your **IRA owns 50%** of an investment, and an **unrelated investor owns 50%**. - Both contribute **funds proportionally** and receive **profits proportionally**. 🚫 **Prohibited Example:** - You personally fund a real estate investment, then **later bring in your IRA** as a co-owner. - This is considered a **self-dealing transaction**, violating IRS rules. ### **2. No Personal Benefit from the Investment** If your IRA co-invests, **you cannot personally benefit** from the investment beyond the returns received by your IRA. 🚫 **Prohibited Example:** - Your IRA invests in a vacation rental property, and you personally stay in it. - Even if your IRA only owns **a small percentage**, this still violates IRS rules. ### **3. Separate Banking & Accounting** All SDIRA-related funds must be handled separately from personal funds. This means: - **Investment income must go directly into the IRA.** - **Expenses must be paid proportionally** by all co-investors, including the IRA. - **No commingling of personal and IRA funds.** 🚫 **Prohibited Example:** - You personally cover an expense for an IRA-owned investment and get reimbursed later. ✅ **Correct Approach:** - The IRA pays **only its share of expenses** directly from the IRA account. ### **What Happens If You Violate the Rules?** If your SDIRA engages in a **prohibited transaction**, the IRS may **distribute the entire IRA**, causing: ❌ **Immediate taxation** of the entire account balance. ❌ **Early withdrawal penalties** (if under age 59½). ❌ **Additional penalties and interest** depending on the severity of the violation. AET, as your custodian, may also treat the prohibited transaction as a **distribution**, removing the asset from your IRA. ### **Final Thoughts: Investing with Partners & Staying Compliant** ✅ **Your SDIRA can invest with other investors**, including other IRAs, provided the investment is structured correctly. ❌ **Your SDIRA cannot invest with you personally or other disqualified persons.** ⚠ **Proper titling, proportional funding, and strict separation of personal and IRA funds are critical** to compliance. If you’re unsure whether a specific partnership structure is allowed, **consult with a tax professional or compliance expert before proceeding**. 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