Urgent Self Directed IRA Questions

[Eric Eckman]

Just made an offer on a vacation rental property and plan on using Self Directed IRA to fund it. I have enough to pay the full value. Of course, I currently have the funds in a 401K. Quit my job today so won't get access to funds for a few weeks but will need to move fast. First question, can anyone recommend the quickest way to streamline this process? Also, my understanding is that since we'll be funding this from SDIRA, all the operating income and expenses will be coming in and out of the SDIRA account. Correct? Any other advice or gotchas to be aware of? THANKS in advance!!!

[Brian Eastman]

@Eric Eckman

You have a cart before the horse issue that could potentially put your IRA in real jeopardy if you are not careful. If you have made an offer and provided earnest money in your name, transferring that to your IRA could be viewed as a self-dealing transaction that could void the entire IRA.

All offers need to be made in the name of the IRA (or IRA owned LLC if going the checkbook route). Any earnest money or expenses such as inspections may not be paid by you or a disqualified person to your IRA.

It typically takes 3-4 weeks to setup a plan, and that is assuming you have the ability to request a rollover early in the process.  I would not expect that you would be able to complete a rollover and have access to funds until late June based on your situation.