Under Presidential Reorganization Plan No. 4 of 1978, the authority of the Secretary of the Treasury (IRS) to issue interpretations regarding section 4975 of the Code (Prohibited Transactions) has been transferred to the Secretary of Labor (DOL) and the Secretary of the Treasury (IRS) is bound by the interpretations of the Secretary of Labor (DOL).

For your reference we have gathered DOL advisory opinions that relate to self-directed IRA strategies.

Advisory Opinion 2000-10A – Opinion where the DOL takes the position that an individual acting in the capacity of a general partner (similar to manager) in an entity that is owned by his IRA and the IRAs of other family members (similar to the IRA LLC) would not violate section 4975 as long as the individual did not receive a salary or fiduciary conflicting benefits.

Advisory Opinions 97-23A and 2005-03A – show us that the DOL has taken the position that an entity owned 100% by a plan (IRA) is a plan asset and any dealings the plan has with  this asset is considered the same as if the plan were dealing with itself rather than a party of interest (disqualified party).