Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago on . Most recent reply presented by

User Stats

34
Posts
3
Votes
Eric Hamilton
  • Thornton, CO
3
Votes |
34
Posts

How to setup,cost,strategies?

Eric Hamilton
  • Thornton, CO
Posted

Hello everyone wanted to ask a few questions in regards to setting up a SDIRA. I have a 401k with one of my employers not much money in it only like 2 years old. I wanted to setup a SDIRA when I do my first investment but wanted some more information on the subject.

1.)For starters how much is it to setup a SDIRA with a LLC?

2.)Can you borrow money against a self-directed IRA to invest and are there any downsides to this?

3.)How much can I contribute to an IRA from my paycheck?If so does the money come out pre-tax to reduce the amount of taxes I pay from income?

4.)Is there any benfit over having a SDIRA for real estate over a 401k?

Thanks for all your input and help-Eric Hamilton

Most Popular Reply

User Stats

17,882
Posts
6,283
Votes
Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
6,283
Votes |
17,882
Posts
Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
Replied

@Eric Hamilton

The cost would depend on providers, services they provide and value, I suggest interviewing several before making your decision.

You can not borrow from an IRA personally, but if you wanted to buy real estate in your IRA, the IRA can borrow but the loan must be non-recourse.

The contribution limit for an IRA is $5,500 per year (if you are over 50 there is an additional $1,000 in catch up that you can contribute). The contributions do not come from your paycheck since this is individual plan, not employer sponsored plan.

Yes, 401k has number of advantages over IRA, one of the major ones is exempt from UDFI taxation on leveraged real estate, I discuss benefits in details on this blog:

www.biggerpockets.com/blogs/2810/blog_posts/21298-...

Hope this helps, good luck!

  • Dmitriy Fomichenko
  • (949) 228-9393
business profile image
Sense Financial Services LLC
4.9 stars
166 Reviews

Loading replies...