Pump New Life Into Your IRA With A Real Estate IRA

Pump New Life Into Your IRA With A Real Estate IRA

With the stock market fluctuating wildly, many people are seeing their IRA and 401k retirement accounts not performing well. Did you know that you can self-direct your IRA/401k? Did you know you could roll over current funds from a retirement account to purchase REAL ESTATE which would be held by the IRA and receive the same tax benefits. You could, for example, use your self-directed account to purchase a rental property and then flow the rental payments back into the account. This fund would continue to grow with all the tax deferred benefits of a standard IRA/401k.

There are still some rules that must be carefully followed to maintain the tax status of these accounts. I am neither an attorney nor accountant so I can't give you advise in these matters but I do want to make you aware of the awesome opportunity that exists, especially in this time on low prices and low interest rates. The following information is provided from the uDirect IRA Services, LLC web site.

What is a real estate IRA?

"Real estate IRA" is a term used to describe a real estate investment(s) in a self-directed IRA or 401(k).

With a real estate IRA, you can earn tax-free/tax-deferred returns on your real estate investments.

What types of real estate IRA investments are allowed?

The following is a partial list:

• Raw land
• Single-family homes
• Commercial property
• Apartments
• Duplexes
• Condos/townhomes
• Mobile homes
• Real estate notes
• Second mortgages
• Partial notes
• Real estate purchase options
• Tax liens certificates

What investments are not allowed?

The following rules govern investments in a real estate IRA:

• Your IRA Cannot Purchase Property Owned by You or a Disqualified Person
• You Cannot Put Any of Your Own Money Into the Deal
• You Cannot Have "Indirect Benefits" from Property Owned by Your Self-Directed IRA
• Real Estate IRA Investments Are Uniquely Titled
• IRA Investments that Use Financing Must Pay UBIT
• Real Estate IRA Expenses Must Be Paid from Your IRA
• Real Estate IRA Income Must Return to Your IRA

For more information, see IRA Rules.