Self-Directed IRA's

Comments(15)

• 
  gprint6th January, 2004

  Yes you can. Type in "self directed IRA" in google and take a look at the first six hits. There is a wealth of info there. The book "IRA Wealth, Revolutionary Strategies for Real Estate Investment" by Patrick W Rice is a book most often recommended as a source of great info on self directed IRA's.

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  r_cos6th January, 2004

  guidentfinancialDOTcom
  
  You dont need a custodian. You have quicker access to your money.
  
  [ Edited by r_cos on Date 01/25/2004 ] [ Edited by r_cos on Date 01/25/2004 ]

• 
  gprint6th January, 2004

  plumzany
  
  I am presently looking at Equity Trust, Sterling Trust and Pensco as potential custodians for my self directed IRA. The web sites for these companies should answer any basic questions that you may have.

• 
  plumzany6th January, 2004

  You guys did notice that i'm asking about a Roth IRA, not a traditional one. Does that make a difference?

• 
  gprint6th January, 2004

  Nope! That's why it is such a great deal.
  
  Bear in mind though, the custodian will most likely not allow you to leverage a self directed account. So if you only have a few thousand dollars maybe you start out buying some tax liens or some discounted notes.

• 
  molotov6th January, 2004

  Check out http://www.trustetc.com/ ... their web site has tons of info and FAQs. They just bought one of the other big Self Directed IRA companies (Ohio something-er-other) so they gotta be a player.
  
  Marker

• 
  plumzany7th January, 2004

  Thanks All !!
  Seems like a great oppurtunity. i am having my accountant look into it!

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  sire16th January, 2004

  We use a roth for my fathers income. He is old enough to pull money from his Roth. Here is the basic. We take houses in a Land Trust "sub-to" (no personal liablity) and sell l/o or owner finace depending on spread and monthly. So the monthy can go to his pocket tax free. Remember the money we used to secure the deal was pretaxed. The best part is when the t/b closes the deal there is another 20K tax free. Not bad for a $10-$1,000 investment.
  Sire

• 
  JohnMerchant16th January, 2004

  Some SDIRA answers:
  
  1. Can use ANY IRA for cash purchase of notes or RE...conventional IRA, Roth, SEP-IRA, SIMPLE IRA. Can legally roll-over or transfer from 403b, 401k, some other pension plans, converted into IRA, then use that for SDIRA investments.
  
  2. Cannot pledge or hypothecate IRA account or obligate IRA for further payments on any deal.
  
  3. If in Roth IRA, any money earned, as in sub-to, or cash buy then flip, is also forever tax free...so RIRA is a fabulous wealth builder.
  
  4. Some great SDIRA sites and resources are available. ..IRS Pub. 590 is on-line, or you can have one sent to you or can be picked up free at most any IRS office of any size....and Equity Trust has good site with lots of FAQ's & answers thereto.
  
  5. 90% of bank trustees don't have a clue about SDIRAs, so you'll need one of the half dozen or so that specialize in these.
  
  Do read the FAQ's and Pub 590 before going much further, as these are free, and will give you lots of basic info.
  
  Good SDIRA investing!
  
  John Merchant

• 
  rwwrrr7th February, 2004

  Not to open a can of worms but when you take money out of a roth IRA you are taxed at ordinary income rates proportionate to the amount the is gain vs. contribution. Tax postponement is the gain. The loss is Long Term Cap gains versus Ordinary income tax rate...
  Just food for thought

• 
  DaveREI7th February, 2004

  Equity Trust is the way to go for your TPA
  
  www.trustetc.com

• 
  plumzany7th February, 2004

  rwwrrr, You're not really taking money out of the IRA, the IRA is "investing" in the properties. Big difference.
  Cheers
  MArty

• 
  cpifer7th February, 2004

  Check out Sterling Trust first - they have been doing this the longest and their fees are less than the others. Pensco has higher fees and no so great customer service.
  
  There are many restrctions so don't let some Newbie tell you that you don't need a custodian. YOu will most likely lose whatever tax benefits you might gain by usint this powerful investment strategy.
  
  I use Sterling for my limited partnerships and IRA's.
  
  C-

• 
  rwwrrr9th February, 2004

  Actually, I must have been drinking too much. I thought I was talking about distributions from traditional IRA's. With Roth IRA's: No tax due if funds are held in the account for at least five years and you are at least age 59 1/2. Total amount of annual contributions can be withdrawn tax-free and penalty-free at any time.

• 
  rwwrrr9th February, 2004

  Putzanny - To be more specific I meant when you take the money out for enjoyment or to live off of. Not for the purchase of property.