Discover more advantages to using a self-directed IRA for real estate investments:
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There are many reasons you should use a self-directed IRA (individual retirement account) to purchase real estate.
From a tax standpoint, when you use your retirement funds to make an investment, generally all income and gains from the transaction is tax-deferred or tax-free in the case of a Roth IRA.
Additionally, with retirement money, you can use leverage for the asset – you can take a portion of your IRA money and combine it with a nonrecourse loan to purchase an asset worth more and hopefully generate greater returns.
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Adam Bergman founded IRA Financial Group and IRA Financial Trust. Prior, he was a tax attorney at some of the largest law firms in the country, including White & Case LLP. He’s written 7 books on the taxation of Self-Directed IRA and 401(k) plans and is a frequent contributor to Forbes.com as well as a member of the Forbes Finance Council. IRAFG was founded to help educate Americans about self-directed retirement investments, empowering them to gain control over their funds.
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