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The Case For Gold In Your IRA

A must read, very informative booklet from AE-Trust

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Self-Directed IRA Real Estate

Self-directed real estate IRA rules and info to get the most from your real estate IRA

Real estate is by far the most popular asset type for self-directed IRA owners. This is because investors don't want their money to be solely tied to the stock market. A self-directed real estate IRA is sought-after because it allows investments in real, tangible properties.

What are the benefits of a real estate IRA?

  • Portfolio Diversification
  • Getting out of the Stock Market
  • A Steady Income From Rental Properties
  • Steady Appreciation

As with any investment, self-directed IRA real estate investing has certain rules that need to be followed in order to qualify as an investment inside of an IRA. At Accuplan, we’re here to answer any questions you may have about investing in real estate inside your IRA.

If you do elect to use a retirement account to hold real estate–whether you are flipping it or not–you need to keep these strict self-directed IRA real estate rules in mind.

What are some of the real estate IRA rules?

  • You cannot stay overnight in the property–even for one night
  • You cannot let your spouse, your children or parents, or any in-laws stay in the house
  • You cannot use the house to benefit any advisor who works with you on your IRA
  • You cannot rent the house to yourself, nor to any disqualified persons, even at market rates
  • You cannot buy or sell any of your own personal property to your own IRA, nor may any disqualified persons mentioned above
  • You cannot intermingle IRA and non-IRA funds
  • You cannot take money out of the IRA, unless you take it in the form of a distribution, which may be taxable. There may also be penalties involved for early withdrawals
  • You cannot lend money to your self-directed retirement account, nor borrow from it
  • Neither can any disqualified person mentioned above
  • Your IRA cannot contract for goods and services with you, nor with any entity that you or any of the above disqualified persons control. That means you cannot buy a property in an IRA and then hire yourself or your son-in-law to provide the landscaping or property management services

What type of real estate can you invest in?

Most people interested in self-directed real estate IRAs limit themselves to homes and rental properties, but in reality, you can invest in so much more. Farmland, commercial property, deeds of trust, and businesses are just a few other options to consider.

We want you to get the most out of your retirement investments, and diversifying outside the stock market can be a great option. There’s a lot to learn, and a lot of rules to follow, and that’s where Accuplan comes in. Let us help you invest in real estate with your IRA, all while helping you abide by the IRS rules that have been put in place for IRA investing. This is all so that you can navigate the investing waters with ease and confidence.

Are there other things I should be aware of?

Unrelated Debt-Financed Income (UDFI) is generated when an IRA borrows money to purchase real estate. It’s important to be aware of any UDFI your IRA may accrue.

It’s also important that you choose a trustworthy custodian for your IRA. This person is responsible for holding your IRA funds, tracking your IRA’s activities (contributions, investments, distributions), and they report all your transactions to the IRS.

Watch, read or listen about real estate IRAs:

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SDIRA ebook

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Self-Directed IRA Investing Guide Now!

SDIRA ebook

Get our FREE
Self-Directed IRA Investing Guide Now!

Self Directed 401k Investing

Start or buy a business, invest in real estate, flip properties and more

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