Self-Directed IRA - The Basics
Many investors are not aware that real estate can be purchased using their self-directed IRA accounts.
This is a brief overview of the basics of Self-Directed (SD) IRAs.
First of all, you should always seek professional advice from your accountant or an SD IRA representative for specific information on the benefits.
- An SD IRA is an individual retirement account through which you can make investment decisions.
- You can invest in anything using an SD IRA, except life insurance, S corporations, and collectibles.
- An SD IRA usually protects your retirement funds as a traditional IRA would.
- You can roll over funds from your other retirement accounts into an SD IRA.
- An SD IRA is a good way to invest in real estate.
- You can use your SD IRA to purchase real estate.
- The SD IRA acts as a trust when it purchases real estate.
- All funds (income and expenses) must go through the SD IRA.
- Profits from properties purchased by an SD IRA usually have the same exemptions as a regular IRA has.
- The same rules generally apply to SD IRAs as to regular IRAs.
- There are restrictions to buying real estate with an SD IRA.
- You can choose a Roth SD IRA if you qualify.
Pensco Trust and Equity Trust are two reputable SD IRA custodians that you can research.
