While the tax code allows retirement accounts to invest in nearly all asset classes, it does prohibit certain transactions. Broadly speaking, the prohibited transaction rules prevent individuals from deriving benefit from their retirement funds prior to distribution. Disqualified persons and entities include the plan owner, members of the plan owners family (spouse, ancestors, lineal descendants and their spouses), any person providing services to the plan, any entity in which the plan owner owns (either directly or indirectly) 50% or more, and any officer, director, 10% or more shareholder, or highly compensated employee of the 50% or more owned entity described above. Learn more about prohibited transactions.