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49
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20
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Joshua Smith
  • Investor
  • Denver, CO
20
Votes |
49
Posts

Roth IRA for Deal Assignments

Joshua Smith
  • Investor
  • Denver, CO
Posted

I stumbled across what I believe to be a genius way of shielding active real estate income.

One can tie up a property for, let's say $1K. This $1K would come out of a Roth self directed IRA. Deal is assigned and Assignee makes a fee of $10K. All $11K goes back into the IRA tax free and is able to be withdrawn before the age of 59 1/2 with the standard 10% penalty.

What am I missing here? I've heard of others doing this; but this seems too good to be true. 

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