Updated over 15 years ago on . Most recent reply
Mother-In-Law's IRA
Hi guys,
I was interested in using my mother-in-law's IRA to finance a real estate deal but recently learned that this is not allowed. Are there any ways around this?
Joe
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Jon Holdman
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
If she takes money out she will pay taxes. Absolutely no way around that. If she's below the minimum age for withdrawls, she will also pay the 10% penalty.
You can help her IRA invest. That is, teach her about RE investing, helping with what's a deal and what's not, and so on. As long as her IRA does the deal by itself, and you personally do not receive any benefit, there's no violation. If you personally receive a benefit from anything her IRA does, its a prohibited transaction.