It’s a little-known fact that Real Estate can be purchased with retirement account funds. When using a Self-Directed IRA LLC or Solo 401(k) for investments in real estate, your profits are tax-deferred back into your retirement account. More important, if you have full checkbook control over your Self-Directed IRA LLC or Solo 401(k), the purchases can be made on the spot as fast as you can write a check. In the case of a Self-Directed Roth IRA LLC, your gains are tax-free and you can take personal ownership of the property tax-free at the age of 59 1/2.
The purchase of Real Estate in today’s marketplace is a surprisingly advantageous investment for a Self-Directed IRA LLC or Solo 401(k), since the best deals are typically foreclosures, short sales and estate sales. These characteristics make a perfect investment climate for the individual with full checkbook control of an IRA Financial Group IRA LLC or Solo 401(k). In fact, the use of a Self-Directed IRA LLC is one of the most tax efficient ways to finance your real estate purchase.
The Solo 401(k) Plan offers a highly attractive loan feature allowing for the purchase of real estate. Under the Solo 401(k) Plan, a participant can borrow up to either $50,000 or 50% of their account value – whichever is less. The IRA Financial Group Solo 401(k) Plan documents will allow you to use a loan from your Solo 401(k) for any real estate investment purposes.
Our unique, IRS approved structures, created by IRA Financial Group’s in-house retirement tax professionals are personally customized to suit your individual needs. Only a handful of institutions are skilled in these specialized account structures and IRA Financial Group is the “gold standard” for compliance, leadership, customer service, and technological innovation.
Steady Income Generator with no tax bite
Income from a rental property bought with a Self-Directed IRA LLC or Solo 401(k) flows back into the retirement account tax-free.
On a percentage basis, the income from real estate and other alternative investments can be two to eight times higher than today’s fixed-income offerings even after paying expenses such as property taxes and insurance. Meanwhile, the account holder can eventually reap the potential appreciation of the underlying asset, tax-free.
Proceeds from selling an investment property roll back into the IRA or Solo 401(k) tax-free.
The Flexibility to Buy Time-Sensitive Investments
IRA Financial Group’s Self-Directed IRA LLC allows you to carry a checkbook that is tied to the account while the Solo 401(k) Plan offers the participant the ability to serve in the trustee role. This means that all assets of the 401(k) trust are under your sole authority. This gives you, the investor, an incredible freedom to fund the investment at a moment’s notice. In this arrangement, you can buy Real Estate with the stroke of the pen, without a fund manager or other bureaucrat saying no or otherwise trying to slow down the process.
Make any Domestic or Foreign Real Estate Investment
A Self-Directed IRA LLC or Solo 401(k) Plan allows you to make either domestic or foreign real estate investments. Whether it is residential or commercial real estate property, using a Self-Directed IRA LLC or Solo 401(k) plan to invest in domestic or foreign real estate offers tax advantages, such as tax deferral and/or tax free repatriation of income.
Know of a great real estate investment in or outside of the United States? Dream of retiring in your country of birth or spending part of the year overseas? A Self Directed IRA LLC or Solo 401(k) Plan allows you to buy a vacation or retirement home now at today’s prices anywhere in the world, rent it out, and then use it tax-free at the age of 59 1/2.
The IRA Financial Group has experience working with clients who have purchased real estate all over the world including, Canada, Brazil, Argentina, Costa Rica, Puerto Rico, Dominican Republic, Nicaragua, Mexico, India, Israel, Italy, France, Switzerland, Germany, Cayman Islands, Bahamas, and many more countries. Our retirement tax professionals have significant experience in structuring foreign real estate investments that are tax efficient from a U.S. and foreign tax perspective.
A Self-Directed Roth IRA LLC allows you to invest tax-free in any domestic or foreign real estate investment.
New Rules for Conversions from IRAs to Roth IRAs
For tax years starting in 2011, the $100,000 modified adjusted gross income limit for conversions to a Roth IRA is eliminated and married taxpayers filing a separate return can now convert amounts to a Roth IRA. For any conversation in 2018, any amounts that are required to be included in income are included in your taxable income for 2018.
The Self-Directed Roth IRA LLC, similar to a Self-Directed IRA LLC, allows the IRA holder to:
- Make a tax-free investment in any type of domestic or foreign real estate property or asset.
- Purchase a rental real estate project and have all the rental income flow back to your IRA or 401(k) Plan tax-free.
- Purchase real estate foreclosures and tax liens on the spot, or make personal loans by simply writing a check and generate profits tax-free.
- Buy your retirement home now at today’s prices, rent it out, and then move in tax-free at the age of 59 1/2!
- Buy a vacation home now at today’s prices anywhere in the world, rent it out, and then use it tax-free at the age of 59 1/2!
- Buy an office building now at today’s prices, rent it out, and then move your business in tax-free at the age of 59 1/2.
IRA Financial Group’s Self-Directed IRA for Real Estate and Solo 401(k) for Real Estate enables you to:
- Invest in real estate tax-free – all real estate related income or gains goes back into your Self-Directed IRA LLC tax-free.
- Buy and sell domestic, foreign, commercial, residential, and rental properties as real estate IRA investments.
- Invest in foreclosed properties and tax liens on the spot, or make personal loans by simply writing a check.
- Buy your retirement home now at today’s prices, rent it out, and then occupy it tax-free with a Self-Directed Roth IRA LLC.
- Buy and sell mortgages, notes, tax liens, tax deeds, etc.