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Updated over 6 years ago,
Rental properties inside IRA vs Cashing out IRA
I have been pondering cashing out my IRA to purchase rental properties. I am in my mid 40's but I think I can avoid the 10% penalty with the "equal withdrawments ". I am reading about two different strategies......one states purchasing within an IRA to avoid the 10% penalty and taxes.....the other says that all the rental tax savings is removed when purchasing inside an IRA and will be left to pay ordinary income once withdraws do occur. Not to mention all repairs have to be done by another party when property is bought inside an IRA
I read the "Tax Strategies for the Savvy Real Estate Investor" and loved the information. But still left confused which way to go.
I ran a simulated property both ways and it seemed like a wash....not sure I caught all the details though.