First I set up a passive SDIRA (recommendations?)

Then I fund the SDIRA by transfering money from my existing IRA

Then I set up an S Corp (Object of S Corp is to flip houses and occasional buy and hold, I will be taking a reasonable salary and the flow through goes to dividends thereby reducing some of the taxes vs an LLC.)

The SDIRA will purchase the majority of shares of the SCorp thereby funding it's operations.

Aside from being careful of the Corporate requirements (register dba name, holding shareholder meetings, annual reports, filings ect.)  Is there any thing wrong with this structure or something that I have missed?

@Tom Russell

A s corp may not have an IRA as a shareholder. So, unfortunately, this plan would not work.

You could use a Rollover as Business Startup structure to have the IRA capitalize a C Corp that could be used to flip houses. This would become your real estate flipping business that you could be directly involved in and receive an income. The retirement plan is simply a shareholder of the parent corporation. The corporation will be a taxable entity, but any dividends issued to the retirement plan shares would be tax-sheltered.

Originally posted by @Brian Eastman :

@Tom Russell

A s corp may not have an IRA as a shareholder. So, unfortunately, this plan would not work.

You could use a Rollover as Business Startup structure to have the IRA capitalize a C Corp that could be used to flip houses. This would become your real estate flipping business that you could be directly involved in and receive an income. The retirement plan is simply a shareholder of the parent corporation. The corporation will be a taxable entity, but any dividends issued to the retirement plan shares would be tax-sheltered.

 That would not work either because it MUST be a 401k that is used to fund a ROBS.

@Steven Hamilton II

The 401(k) or Profit Sharing plan used in the ROBS structure may be funded via a rollover from an existing tax-deferred retirement plan - IRA, 401k, etc.

Also, you cannot financially benefit in anyway from your SDIRA. Receiving a salary from the s corp would be considered self-dealing. 

@Tom Russell  

The only way I can see this working is if you utilize the ROBS arrangement. To learn more about this visit the following IRS link. 

http://www.irs.gov/Retirement-Plans/Employee-Plans...

Darn.   I thought I finally had it.

In reviewing the IRS Robs Compliance Document it seems that I need to be in compliance with 401a  and to file the 5500 form.

So it should still work   

I'll look into the 401a for hiccups next

Thanks guys

Originally posted by @Brian Eastman :

@Steven Hamilton II

The 401(k) or Profit Sharing plan used in the ROBS structure may be funded via a rollover from an existing tax-deferred retirement plan - IRA, 401k, etc.

You can fund a corp from an IRA; however, I don't recommend it as its not the best structure.