It is never too late to start with the basics. PGI SelfDirected certainly understands the value of an individual moving some of their retirement assets into SD status. This can certainly be done with the transfer of IRA assets, but most people do not know that they can do this in a 401(k) classification, as well. With the 401(k), the "general rule" (as there are exceptions to this) the individual must be either self-employed or meet the IRS definition of having activie outside self-employed business interests ourside of their regular, W-2 employment.
Here is what most people don't know....you have had this oppottunity since 1974!! Did your broker ever tell you that? Of course not. Why would they?
How you want to think of an IRA is that an IRA = Trust (meaning a legal trust). In general terms, if a Trust can execute a transaction, so can an IRA. Please note IRS Section 408(a) -- Individual Retirement Account -- means a trust created or organized in the United States for the exclusive benefit of an individual or his beneficiaries, but only if the written governing instrument creating the trust . . .:
So, if there is anything you get from this blog in SIMPLE TERMS it is that an IRA is simply a tax-exempt TRUST. As a general rule, anything a trust can do and IRA can do, but in a tax free environment.
But, let's hear from a few others....
Yes, you can buy real estate with your IRA.....All your IRA money is in mutual funds and you'd like to diversify. One way is to buy raw land, a house or a building--even a retirement home. moneycentral.msn.com
A little knows option for investing in real estate is to do it through your individual retirement account (IRA). Business Week 9/19/02
Self-employed investors who have wished they could buy real estate as a tax-protected retirement investment may now have a good oppotunity. The Wall Street Journal 9/18/02
REAL:ESTATE INCLUDING LEVERAGED REAL ESTATE generally is permitted in an IRA if the investor follows certain commonsense guidelines, such as finding a trustee that specializes in holding real estate and other unusual IRA assets. Journal of Accountancy/April 2000
