Selling IRA Property

[Jeremy Paschedag]

When I'm 59-1/2 years or older and want to put the IRA properties in my name, what is that process? Would this be considered a dividend? Or does the property

When purchasing a property, do I complete the paper work from the title company? Or does the IRA custodian?

Thanks!

[Brian Eastman]

@Jeremy Paschedag

You may not purchase a property from your IRA. The only means to personally take a property held by the IRA is to distribute the property from the IRA in-kind. The property would need to be formally appraised and that value would be the taxable amount of the distribution (non-taxable in a Roth IRA).

Generally, you are better off continuing to hold the property in the IRA and let it produce income that you can distribute, or sell the property and convert the IRA holdings to cash - which you can then distribute and/or reinvest as appropriate.

If you had a stock portfolio, you would not sell the entire portfolio and take the cash out of the IRA the day you turn 59 1/2. Same thing here.

Transacting with a self directed IRA will vary depending on whether you work with a 3rd party custodian/trustee or establish a checkbook IRA LLC program. With a custodian, you generally work with counter-parties like a seller or title company to prepare documents, but the vesting will be to the IRA and the IRA custodian will need to review, sign and record the documents. With a Checkbook IRA LLC, you have signing authority for the LLC and execute all transactions directly on behalf of the LLC.