Website design By BotEap.comThe Self-Directed IRA allows investors to purchase (i.e., buy and hold/repair and flip) property with tax-free dollars within a Traditional IRA and collect rent or earnings from a flip, tax-free, until realized. distributions at retirement. The Roth IRA allows earnings and rent to remain tax-free for life. Once Roth IRA distributions are made at retirement, only the earnings after the distributions are taxed. The power of tax-free dollars provides tremendous growth potential for your personal real estate investment portfolio and typical returns of 10-14%, including asset appreciation.
Website design By BotEap.comA self-directed IRA allows you to invest your IRA savings in what you know and understand. Some examples include, but are not limited to: rental properties, hard money loans, wholesale, buy-fix-trade, mobile homes, and auctions. These are just a few examples of real estate investments that can greatly increase the buying power of your IRA.
Website design By BotEap.comWhat is a Traditional Self-Directed IRA?
Website design By BotEap.comDepending on the amount of any contribution you make to your IRA, you can deduct that amount from your earned income. These contributions are tax-free until you withdraw those funds, generally starting at age 59½ to avoid early withdrawal penalties. You can convert your Traditional IRA to a Roth IRA at any time, but you must pay taxes on the conversion amount.
Website design By BotEap.comWhat is a self-directed Roth IRA?
Website design By BotEap.comA Roth IRA contribution is an after-tax contribution to your IRA. However, any earnings made within a Roth IRA are tax-free for life. An example would be that rental income from the purchase of a rental property (that was purchased using Roth IRA contributions) would be tax-free as long as that property remains within the Roth IRA.
Website design By BotEap.comAre there IRA investment restrictions?
Website design By BotEap.comYes, they are called Prohibited Transactions which include:
1. Life insurance premiums
2. Collectibles such as: works of art, antiques, stamps, etc.
3. Carry out commercial transactions and/or mix assets or services with a “Disqualified Person”
Website design By BotEap.comWho is a Disqualified Person?
Website design By BotEap.comVirtually everyone in your or your spouse’s vertical family tree: parents, grandparents, children (and their spouses), and grandchildren (and their spouses).
Website design By BotEap.comThis opportunity is for everyone, just take the first step
Website design By BotEap.comMany people are well versed in investing, selling and renting property. However, there are those who would like to invest in Real Estate but hesitate to take the first step. A recommendation for these people would be to contact a Wholesaler who will work with you both in investment projects (flips) and in purchases of rental properties. They must also provide property management services, typically a fee of 10% of monthly rental income, and may work with your IRA management group. I work with Alpine Capital Solutions in Indianapolis.
Website design By BotEap.comSo look at your current returns on your IRA and ask yourself, can I do better? Choosing to control your own investments through real estate could significantly increase your retirement savings and give you more opportunities to enjoy those golden years.
