In a blog post last month, we spoke about what an IRA is. As a refresher, an IRA (as defined by the IRS) is a: “tax advantaged savings plan and that an IRA is a trust that is established in the US for the benefit of the account holder.” Well, a Roth IRA (largely in effect as a result of…read more →
Many a blogs and articles have been written from this author and others about the benefits associated with a self-directed IRA and 401K. So, that being said, why would this post/article even begin to state that establishing a self-directed IRA might be the worst mistake you ever made?! Why would the ability to self-direct one’s own retirement assets be a…read more →
The simple answer is…..NO! Why? Remember, the “I” in IRA stands for Individual, and not anyone else. While you can certainly make other individuals to beneficiary of your IRA, it is still YOUR IRA. So, with regard to a self-directed IRA, a typical question will be, “Is there any way my IRA and my wife’s IRA can be brought together…read more →
No. This would be considered a prohibited transaction (see IRC 4975). You may not purchase property which is currently owned by you or any other disqualified person. You would need to find another piece of Real Estate that you don’t already own to purchase.
“An individual retirement account (Page 7) is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. The account is created by a written document. The document must show that the account meets all of the following requirements. The trustee or custodian must be a bank, a federally insured credit…read more →
What DOES the IRS really think about people investing in real estate with their IRAs and 401Ks?