Permissible IRA and 401K Investments

It is not the IRS, but the custodian that limits your investment choices. The following are just some of the investment categories allowed under the IRS rules:

Real Estate

  • Residential
  • Commercial
  • Lease Options
  • Renovations
  • Rentals
  • New Construction
  • Foreclosures
  • Raw Land
  • Development
  • …and much more
Businesses

  • Professional
  • Start-ups
  • Franchises
  • Retail
  • Public
  • …and more
Financial Paper

  • Loans
  • Mortgages
  • Charitable Entities
  • Discounted Notes
  • Tax Leins
  • Factoring
The Financial Markets

  • Stocks
  • Bonds
  • Mutual Funds
  • Options
  • Limited Partnerships
  • REITS
  • Annuities
  • Covered Calls
  • Futures
  • Commodities

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The Family IRA

The Family IRA can be used when the desired investment is too large for your IRA to purchase alone. In the below illustration, Bill and Sue use their IRAs to buy a prorated interest in a third LLC. Then that third LLC purchases the property. In this strategy as in all investment strategies, structure and adherence to the IRS rules is of the utmost importance.

 

 

Checkbook Control Of Your Retirement Funds

ImageYou have heard it said that “time is money”. Never has that been more true than with investing. When a good real estate deal comes along, you can not afford to take weeks to act. With a typical bank or brokerage IRA it can take from a few days to a few weeks to receive a check from your IRA. Why? After all, it is your money that you are requesting. At PGI, we will help you with the simple yet effective steps of establishing Checkbook Control over your retirement funds. Once completed, you can simply write a check when you have the opportunity to grab a great investment. What could be simpler than that?

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Minimal Reporting

There are minimal reporting requirements when you establish an LLC inside of your IRA, since the LLC is by definition a “pass-through entity”. This means that all of the LLC’s gains and losses pass-through to its owner; in this case, the tax-deferred entity of the IRA. The tax-deferred structure of the IRA usually prevents current taxation.