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Updated almost 8 years ago on . Most recent reply presented by

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Sandra PIrtle
  • Investor
  • Honolulu, HI
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Lawsuit protection inside self directed accounts

Sandra PIrtle
  • Investor
  • Honolulu, HI
Posted

Does buying real estate under my 401K or IRA provide any additional protection beyond the fact that they are owned under LLCs, which are owned by the fund?

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Brian Eastman
  • Self Directed IRA & 401k Advisor
  • Wenatchee, WA
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Brian Eastman
  • Self Directed IRA & 401k Advisor
  • Wenatchee, WA
Replied

@Sandra PIrtle

The IRA LLC does provide an additional layer of protection to you personally. Courts have found that when an IRA account directly owns property, a claim against the property may seek remedy from the IRA owner if the IRA/Property does not satisfy a judgement. The LLC limits the liability of the LLC owner (the IRA) and you are even further removed.

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