The IRS prohibits borrowing money from a self-directed IRA, but there are some ways to get short-term access to funds:
  • Rollover rule
    Move funds to a different retirement account for up to 60 days.
    However, if you don’t repay the funds on time, you could lose the tax-advantaged status of the account and face penalties. 

  • Non-recourse loan
    This is the only type of financing allowed for a self-directed IRA. In a non-recourse loan, the lender can’t pursue the borrower personally if the borrower defaults. The lender can only use collateral from within the IRA to recover their losses. See Non-Recourse Lending in Your IRA

Here are some other ways to use a self-directed IRA to leverage funds: 
  • Borrow from a private party,
  • Get seller financing, and
  • Enter into a lease-purchase or contract-for-deed transaction. 
If you’re considering lending money to someone using their self-directed IRA, you can:
  • Set up terms and conditions for the loan, including the amount, repayment period, interest, and fees 
  • Consider requiring collateral to protect against default 
  • Have an attorney review your documents 
  • Make sure the check or wire transfer is made out to the IRA, not to the borrower 
  • Ensure the borrower maintains enough liquidity in their IRA to make payments