Looking for DFW recommendations for Self Directed IRA Company

4 Replies

Need to get pros and cons of several Self Directed Co's in TX. Looking to be a passive in a few apartment deals in 2015, and 85% of our funds are in IRA's with Fidelity and Ameriprise. Any pointers on what to look for in choosing a company. Have been told to check into the companies back office and their efficiency and diligence.

TIA,

Damian

I've worked with Quest IRA out of Houston. Keep in mind the custodian does not have to be local, I would recommend comparing a few.

I don't have any recs. on self-directed IRA providers, but be sure to read up on UBIT (unrelated business income tax provisions) as they relate to leveraged real estate investments.

I'm not a tax expert, but my understanding is that if your investment (likely an LLC) borrows money to help fund the purchase price, then your returns are subject to UBIT, which IMO defeats the purpose of IRA's.

I've looked @ ways to use my IRA funds efficiently to fund IRA investments, and am going to start taking 72t distributions (SEPP) in early Jan. to augment my MF investment funding. I may take some Roth distributions (from prior contributions, so tax free) if the right opportunities arise down the line as well.

Good points. I'll need to contact my CPA about the UBIT, probably right about that, but not sure if it is true if all funds stay in the IRA.

Originally posted by @Chris Soignier :

I don't have any recs. on self-directed IRA providers, but be sure to read up on UBIT (unrelated business income tax provisions) as they relate to leveraged real estate investments. I'm not a tax expert, but my understanding is that if your IRA borrows money to help fund the purchase price, then your returns are subject to UBIT, which IMO defeats the purpose of IRA's.

Good alternative to SD IRA is self-directed Solo 401k plan. It has several advantages over SD IRA including the fact that leveraged real estate inside of Solo 401k plan is not subject to UBIT.

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