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Buying land with self-directed IRA
Hey all!!
I'm looking to buy a 40ac parcel of land for $320k in a fast growing area of colorado. I want it as a buy and hold for future development (10 years). I have 125k of my 401k to transfer into a self directed IRA, 100k of which will be down payment and get a loan for the 220k. I'm getting mixed answers if this is possible. With the max annual contribution to the IRA being 6k and the property not making income, is this possible? I will still be contributing more than enough monthly to cover the mortgage, into my employer 401k.
How do I make the 401k contribution monthly go toward the loan without incurring the penalty or tax hit?