Disqualification notably only occurs with prohibited transactions between the owner/beneficiary. Not entities where the owner is a director, that can only incur

Disqualification notably only occurs with prohibited transactions between the owner/beneficiary. Not entities where the owner is a director, that can only incur a penalty. If the transaction isn’t unwound its a 100% penalty. Try this source or find a similar source that you respect: https://www.kitces.com/blog/self-directed-ira-prohibited-transaction-fiduciary-disqualified-person-irc-section-4975/#tax-consequences-and-penalties-for-engaging-in-a-selfdirected-ira-prohibited-transaction https://www.kitces.com/blog/self-directed-ira-prohibited-tra... The law itself doesn't make that very clear, thats how its been interpreted and acted upon Again, we are still starting from two different assumptions: I dont consider earning money to be abusive, I dont consider taking risks with your own private equity in a tax deferred account to be abusive. Its great that these accounts are allowed to take risks.