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As you know, it is against all the rules to use your IRA to invest in anything which benefits you or a related party. This is one quick way to get your entire IRA disqualified, quite likely owing a big tax bill and penalties as well.

However – and there’s always a however in life, right? – there is one possible way that you could use funds from an IRA to invest in your own business. It’s a bit tricky, but it is a perfectly legal, in fact encouraged, method.

Howzat? The IRS encourages the use of IRA funds for your own business? Not exactly. There’s more to it than that. The IRS encourages by preferential law the use of 401(k) funds to invest in the business sponsoring the plan. A 401(k) is a type of qualified retirement plan that is allowed specifically to invest in the

Keep reading this article on Financial Ducks In A Row.

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