When it comes to self-directed investing, the most frequently asked questions are about what kinds of investments and transactions are acceptable and which are not. Both the Internal Revenue Code and ERISA have sections pertaining to “self dealing” and “prohibited transactions.” Most prohibited transactions are the result of commerce between your retirement account (the plan) and a “disqualified party.” Before we explain prohibited transactions, we should clarify what a “disqualified party” (sometimes referred to as a “party of interest”) is:
