Whisper Talez (Tales)

Self-directed IRAs allow for a wide range of IRA investment choices. The Self Directed IRA also improves the account owner’s opportunities to diversify within their IRA Investment portfolio.

A Self Directed IRA Account requires a specialized IRA custodian or administrator to open an account. These types of IRA accounts have to be held with an IRA custodian who allows alternative investments inside the IRA.

Some investments, such as life insurance or collectibles as defined by the Internal Revenue Service, are not allowed Self Directed IRA Investments. In addition, you cannot place rental properties that you already own inside your IRA account either.

IRA Investors who are set up properly are not required to take a taxable distribution from the IRA when investing in items such as real estate; they are simply making an investment inside the IRA account, just as they would with a mutual fund or stock. All of the gains from the investment are returned directly into the IRA, and all of the expenses of the property are paid from the IRA, all without any taxes.

Investing with Multiple Investors with Your Retirement Funds

LLCs can serve as a valuable vehicle for certain IRA investment opportunities. First, if there are multiple investors going into a single real estate transaction, the LLC can facilitate the acquisition and disposition of assets by allowing a single member (e.g., managing member) to sign all documents for the other members. LLC’s can be taxed as partnerships therefore pass through to the IRA which is tax deferred. The advantage of using an IRA to invest in real estate can accelerate your wealth and ensure you don’t outlive your retirement money.