The COVID-19 pandemic is challenging each one of us in different ways— some harder than others.  Many have started working remotely, or wear masks whenever they leave the house.  Many have been laid off, furloughed, or need to take care of a loved one who may have contracted the virus, or maybe became sick themselves.  We have all been affected.

If you have changed jobs or retired and have left savings in a former employer's retirement plan (e.g. 401(k), 403(b), governmental 457 (b)), you can move these funds to a self-directed IRA and invest in real estate without loss or penalty. Real estate investments in self-directed IRAs grow tax-deferred or tax-free until withdrawal. This means that when your property generates income or is sold, these profits are not taxed at the time because they go back to the IRA. It is not until you start taking distributions at retirement that the income will be taxed, depending on the type of plan you have.

If you’re self-employed, you may be wondering what options you have to save for retirement. The good news is that there are several different retirement accounts, depending on your needs. Figuring out the best option for you and your retirement goals can be the challenge— but we are here to help.

Searching for a real estate IRA custodian that doesn’t break the bank? It helps to know what you’re looking for.

The things that cost real estate investors the most don’t always matter as much to the average person with a self directed IRA. If all you do is read the “getting started” guides you find on every custodian’s website, you might not even know the right things to ask (until it’s too late).

So, you want to invest in real estate with your IRA, but don’t have enough money to buy the property outright. Does that mean you’re stuck investing in stock? No! Lucky for you, there are plenty of other options for determined investors. Today we’re going to cover one of the most common: partnering your IRA funds.

With the end of the year approaching, it’s easy to sit around wondering where the year went. It seems like the year just flew by! But don’t get stuck in the past while you should be getting ready and focused for what next year will bring— and what lies ahead. One important way to start the new year off right is by making sure your IRA beneficiary information is up-to-date. There are so many reasons this choice is important and there’s a lot to consider, but we’re here to help you make an informed choice.

If you’re a small business owner, you’re likely looking at retirement plan options for you and your employees. Traditional 401(k)s and other plans are often expensive and complicated, not exactly meeting the needs of smaller companies. The number of options can be overwhelming and picking the right plan is a lot of work, leaving you wondering if you made the right choice for your employees.

Traditional and Roth IRAs are the most popular types self-directed accounts held at IRA Resources. Generally, our clients bring their existing retirement savings (either through a rollover from an old 401(k) plan or transferring existing IRA funds) from a large institution like Fidelity, Schwab, or Wells Fargo, since investing in alternative assets such as real estate is generally not allowed with these establishments. The investments then grow tax-free or tax-deferred (depending on the account in which account they are held), providing a variety of options most investment providers can’t meet. 

Investing in real estate with your IRA might seem complicated the first time you do it, but at IRA Resources, we make it easy. We'll be with you every step of the way, to assist and explain the process in plain English. We work with your agent, attorney, title company, and other parties to make sure nothing falls through the cracks. With more than 21 years of experience in the self-directed retirement industry, we have seen it all and know what to expect. But, before you start actively looking for an income property, you need to do your research and determine the right investment strategy for you. 

While assets are still in your self-directed IRA, you generally don’t have to pay taxes on the income. But, in certain situations, you do. This happens when the IRA owns property has been leveraged or is an operating business. The two phrases you’ll need to know about this are Unrelated Business Income Tax (UBIT) and Unrelated Debt-Financed Income (UDFI).