What is a disqualified person?

A disqualified person for a self-directed IRA is someone the IRS prohibits from engaging in transactions with the account because they could benefit personally or influence its use. This includes the IRA owner, their spouse, lineal family such as parents and children, fiduciaries or service providers with authority over the account, and entities they control or own a significant interest in. Transactions between the IRA and these individuals or entities are treated as prohibited and can jeopardize the account’s tax-advantaged status.