Considering using funds from a SDIRA for a cash purchase of an investment property; albeit struggling w/not being able to do improvements myself. Few questions... 1) Would I at least be allowed to manage the finances, pay bills, or does that also need to be hired out? 2) Are there strategies to convert said property to use down-the-road? 3) If no to question 2 above and you wanted to still use it personally, could you sell to yourself at market rate pay tax etc?
Is there any 'other' way to use funds from an IRA (roth, held for over 5 years) to pay for an investment property? Borrow, payback? We are talking way way above the 10k distribution limit and we are not first time owners.
4. You can have a Self directed Roth IRA that invests in real estate then once 59.5, assuming you've had any Roth IRA for at least 5 years then you distribute that property to yourself tax and penalty free.
5. What $10k distribution limit are you referring to? I know of no such thing.
Considering using funds from a SDIRA for a cash purchase of an investment property; albeit struggling w/not being able to do improvements myself. Few questions... 1) Would I at least be allowed to manage the finances, pay bills, or does that also need to be hired out? 2) Are there strategies to convert said property to use down-the-road? 3) If no to question 2 above and you wanted to still use it personally, could you sell to yourself at market rate pay tax etc?
Is there any 'other' way to use funds from an IRA (roth, held for over 5 years) to pay for an investment property? Borrow, payback? We are talking way way above the 10k distribution limit and we are not first time owners.
Thank you for any input....
For #2 it would be a in-kind distribution (transfer in kind) where you would have to get an appraisal and your custodian would then list it on your 1099-R as a distribution for that amount. Then you would have to pay normal "income tax" on the amount of the distribution.