Self Directed IRA

[Michael Hable]

Hello everyone!

I'm interested and have been reading about SDIRA and had some questions I was hoping to get answered.

(1) Once the money is transferred to a custodian and a property is found all profits go back into the SDIRA. Is it not until 59 1/2 like a traditional or Roth IRA that you cannot withdraw?

(2) Say I had $100K that I transfer into a SDIRA, but I need more money to purchase a commercial or apartment complex. Can I take out an additional loan in conjunction with a SDIRA?

(3) I realize there are fees with having a SDIRA. What is typical breakdown of fees?

(4) If you have worked with a SDIRA, how has your experience been? Would you do it again and any regrets?

Thank you all in advance for reading my post and answering my questions.

All the best,

Mike

[David Thompson]

Hi Michael,

I use a SD-IRA and have steered other investors to it for investing in our syndication deals because IRA money is a great resource for folks to use. I find many folks are active in their investments but IRA funds have to be used in the right way (otherwise you violate self-interest rules). Couple tips:

1) Use your IRA money to invest in other people's deals where you are a limited partner (not the GP).

2) If you can do a solo 401K better than a self - directed IRA as the latter has tax implications on the leveraged portion. Plus, you can invest more into a solo 401K.

3) There are a lot of options from a Custodian standpoint and fees are all over the board.  I use one that I like and can PM you w/a contact that can help answer some of your questions.

4) I'd advise meeting w/your CPA that can help answer your questions because its so critical to set these up right and know the rules especially for active investors. IRA IMO are great for being in passive deals.

5) There is one other angle that I like a lot to reduce fees and headaches and that is to setup a checkbook SD-IRA. In this regards you are not having to go through the custodian w/inflows and outflows that just wring up extra costs and administrative hassles. That said, you have to really be good at accounting for each in / out flow to satisfy an audit.

Hope some of this helps but highly encourage you to seek out a CPA and talk w/some custodians to get good answers to your questions and ensure you are getting accurate info.

Dave