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Updated about 2 years ago on . Most recent reply presented by

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Michael Mahoney
  • Realtor
  • Los Angeles, CA
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Can I ever buy a property from my SDIRA?

Michael Mahoney
  • Realtor
  • Los Angeles, CA
Posted

I have a rental property that’s in my SDIRA that I would like to purchase from it to live in in my retirement.  Is there a way to do that?

If so, would the SDIRA be able to finance the transaction, in whole or in part, as “Seller Financing”?  

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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
Replied
Quote from @Michael Mahoney:

I have a rental property that’s in my SDIRA that I would like to purchase from it to live in in my retirement.  Is there a way to do that?

If so, would the SDIRA be able to finance the transaction, in whole or in part, as “Seller Financing”?  

Michael, IRS rules state that the following are prohibited:

1. A disqualified person’s transfer of plan income or assets to, or use of them by or for his or her benefit
2. A fiduciary’s act by which he or she deals with plan income or assets in his or her own interest
3. A fiduciary’s receipt of consideration for his or her own account in a transaction that involves plan income or assets from any party dealing with the plan
4. Any of the following acts between the plan and a disqualified person:
- Selling, exchanging, or leasing property
- Lending money or extending credit
- Furnishing goods, services or facilities

Source: https://www.irs.gov/retirement-plans/plan-participant-employ...

As you can see neither of your scenarios would be possible. 

  • Dmitriy Fomichenko
  • (949) 228-9393
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