Yes. According to IRC 4975, siblings are not included in the definition of a disqualified individual. While most people believe that the IRS may have intended that such individuals be considered to be disqualified, they are not identified. As such, a loan to your brother does not appear that it would be considered a prohibited transaction. As noted, while many believe it is an error that the IRS omitted siblings from the definition, they were, nonetheless, omitted. To the best of anyone’s knowledge, the IRS has never ruled to the contrary.
← Self Directed FAQs