The IRA exists in a variety of forms as a method of sheltering retirement savings from certain taxes and lawsuits. The self-directed individual retirement account, or SD IRA, is a form in which the investor directly chooses the investments of the IRA.
- You can invest in anything using a SD IRA, except life insurance, S-corporations, and collectibles.
- You can roll over funds from other retirement accounts into a SD IRA
- Because you can use your SD IRA to purchase real estate it is a good way to invest in real estate
- The SD IRA acts as a trust when it purchases real estate, all funds must pass through the SD IRA
- Profits from properties purchased by a SD IRA usually have the same exemptions a regular IRA has.
I am a real estate agent, not a financial advisor, so I strongly encourage you to see professional advice from an accountant or a SD IRA representative for more specific information as to how an SD IRA might benefit you.
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