How can I take funds out of my IRA to buy real estate, without paying taxes and penalties?
That’s simple. You DON’T take the funds out. Buying 100 acres of raw land in Oregon is just like buying 100 shares of Intel, a standard transaction for a self-directed IRA. Buying real estate is just a purchase of a different TYPE of investment. The mechanics of execution are also quite different. Whereas the purchase of 100 shares of Intel can be performed instantaneously through the Internet, the completion of a real estate transaction takes place in many steps, over 30-60 days. The careful handling of hundreds of real estate transactions simultaneously requires the effort of a specialist.
Thats simple. You DONT take the funds out. Buying 100 acres of raw land is just like buying 100 shares of Intel, a standard transaction for a self-directed IRA. Buying real estate is just a purchase of a different TYPE of investment. The mechanics of execution are also quite different. Whereas the purchase of 100 shares of Intel can be performed instantaneously through the Internet, the completion of a real estate transaction takes place in many steps, over 30-60 days. The careful handling of real estate transactions simultaneously requires the effort of a skilled real estate agent.
Related Questions
- Can I transfer/rollover funds from an existing IRA, 401(k), 403(b), SEP IRA, Roth IRA, Keogh, to a Self-Directed IRA for the purpose of investing in real estate?
- What are the real estate taxes and operating costs of the real estate I am planning to buy?
- How can I take funds out of my IRA to buy real estate, without paying taxes and penalties?
