Self directed IRA question

3 Replies

My husband and I both have Roth IRAs. I also have a regular IRA. So I have two questions. First, Can we combine our Roth IRAs to do a deal? Or do we need to keep the funds separate and I can use my Roth to purchase one deal and he can use his to purchase another? Second, is there a benefit to using the self-directed Roth IRA vs. the self-directed IRA?

Learning a bit more every day!  So thankful for this BP community.  

@Samantha Soto
While there are ways that you can joint venture your IRA with that of your husband, it ups the complexity and will limit your exit path flexibility to some degree.

The Roth vs Trad question is a tough one to answer.  Generally speaking, the better the returns, the more you want to achieve that under a Roth umbrella. This is true whether the account is invested in real estate, stocks, or whatever.

@Samantha Soto

One option is to process under tenancy- in-common where both IRAs take title to the property. The expenses and income is then shared based on the ownership percentages which is determined at time of purchase.  

 

Thanks @Mark Nolan !  Just eager to be able to do another deal, but it would be much easier if we could use the combined amount!

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.