ASHEVILLE, NC / ACCESSWIRE / September 18, 2020 / What are the rules for investing in real estate for retirement? For investors who invest in real estate with personal funds, the rules are pretty clear and can include personal benefits-such as renting out a house to someone they know. But as a recent post at American IRA highlighted, investing in real estate with a Self-Directed IRA comes with a lot of benefits-as well as specific rules that investors need to pay attention to in order to realize the tax benefits.
Investors who turn to real estate within a retirement account are using one of the primary benefits of a Self-Directed IRA: they are turning to nontraditional assets. The IRS, in fact, allows investors to use nontraditional assets such as real estate, LLCs, and more within a Self-Directed IRA. This gives investors more options than the stock market for retirement, using the tax protections available in accounts like Self-Directed Roth IRAs and Self-Directed Solo 401(k) plans.
In the guide, American IRA pointed out some of the individual quirks of investing in real estate. One of the most important quirks, it notes, is more than a quirk: it is a hard and fast rule. Investors who own real estate within a Self-Directed IRA cannot use their real estate investments for personal benefit by transacting with a "disqualified person." A classic example of transacting with a disqualified person would be using a commercial property investment and renting out to a business partner.
"Investing in real estate can be liberating for Self-Directed IRA investors," said Jim Hitt, CEO of American IRA. "But we also want to note that these accounts do have some rules and regulations. The same is true for all retirement accounts-not just Self-Directed ones. But investors who use Self-Direction need to know the rules so they can play by them. In doing so, they are more likely to spot the investment opportunities that make sense for their retirement strategy, follow the rules, and create gains in their portfolio."
American IRA, LLC, was established in 2004 by Jim Hitt, CEO in Asheville, NC. The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals, and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents, or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality, profitability, or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA."
SOURCE: American IRA, LLC
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