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) IRA's.
First of all you should always seek professional advice from your accountant or a SD IRA representative for specific information on the benefits.
- A SD IRA is an individual retirement account through which you can make the investment decisions.
- You can invest in anything using a SD IRA, except life insurance, S-Corporations and collectibles.
- A SD IRA usually protects your retirement funds as a traditional IRA would.
- You can roll over funds from your other retirement accounts into a SD IRA.
- A 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 a SD IRA usually have the same exemptions as a regular IRA has.
- The same rules generally apply to SD IRA's as to regular IRAs.
- There are restrictions to buying real estate with a 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.