Self direcred IRA investing

[Josh Sparks]

If i buy a property with a self directed IRA, is there any limit on rental income exceeding the yearly contribution limit? Also, are you able to leverage the equity in the property during or after its paid off? If so, how?

[Brian Schmelzlen]

Hi Josh,

No, there is not a limit on the amount of income the self-directed IRA can make on its investments. That is completely separate from the contribution limits.

If you are seriously considering using a self-directed IRA, talk to an expert. There are a lot of them out there. The penalties for accidentally committing a prohibited transaction are severe, so whatever it costs you to make sure it is set up correctly is worth it.