What Is A Real Estate IRA

Real estate has been one of the stronger and more stable investment choices for Americans for quite a long time. For many investors and people looking to maximize their retirement investing, Real Estate IRAs are an attractive option. A Real Estate IRA is a self-directed IRA that, as the name implies, focuses on real estate investment. With this self-directed IRA, it is possible to invest in and purchase different types of real estate and related assets.

Why a Real Estate IRA? Why Now?

Real Estate IRAs are incredibly attractive, in no small part because of their benefits. This self-directed option was designed by the government to allow investments to grow tax-free over time. This means that you benefit from the tax-deferred income until the funds are withdrawn.

It is true that there are still rules around Real Estate IRAs. You still must wait until 59 ½ to withdraw from the account to avoid early withdrawal penalties, but active real estate investors have been known to buy, sell, and flip properties all while maintaining their tax-deferred status. These benefits make the Real Estate IRA option stand out for many account holders.

Purchasing Real Estate Property With Your IRA

Purchasing property with a real estate IRA is similar to a regular real estate transaction, but there are a few things to keep in mind:

  • The property becomes an asset of your real estate IRA ­- you indirectly own it and you may not use it.
  • Watch out for prohibited transactions – You may not purchase property owned by you, your spouse, or your descendants and ascendants.
  • You or your family members cannot live in or lease the property while it’s in your IRA.
  • Your business cannot lease or be located on any part of the property.
  • All income and expenses generated by the property go in and out of the IRA.
  • If you are leveraging the property, you cannot personally guarantee the loan.

Self-directed Real Estate IRA In Birmingham Alabama and Nashville TN

With an IRA Innovations real estate IRA, your IRA can invest in real estate and related assets.

Now is a good time to invest in a real estate IRA and build wealth for the future. You can purchase income-generating rental property, commercial buildings, or rehabs. Diversify out of the stock market and put your real estate IRA to work.

To learn how to obtain a self-directed IRA for Real Estate, as well as the possibility of receiving property as a distribution from your retirement plan, call IRA Innovations.

We provide the tools and assistance you need to get started.

Call IRA Innovations at (205) 985-0860 and get started on your self-directed IRA today.

We are never in conflict with your investment decisions because we do not endorse or sell any investment products.