A Self-Directed Individual Retirement Account (SDIRA) is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee, or custodian hold the IRA assets on behalf of the IRA owner.
1. You cannot use the property for a personal residence, second home or vacation home. This means your self directed IRA can hold raw land, rental properties, condos, commercial property, fixer-uppers and foreign property. 2. The IRA can buy debt-financed property but the debt must be non-recourse to the IRA and the IRA may have to pay UBIT (unrelated business income tax) on the profits from the debt-financed property. There are 4 ways to buy real estate in an IRA: Contact your Montello Wealth Financial Consultant Your Montello Wealth Financial Consultant can assist you in understanding the Self Directed IRA. Contact us for more information on Montello Wealth’s array of Retirement planning strategies. |