Transferring Roth IRA into real estate

[Matt Brown]

I'm looking to expand my portfolio but trying to get the cash for the down payment (only have 1 SFR right now) Currently, I have a Roth IRA that's in mutual funds, sizeable enough for a down payment plus what I have in savings. I've a decent paying job and looking for a conventional loan on SFRs.

Two questions really, one, can I cash out my Roth and put it into property without the tax penalty? Is this even possible. Two, is this even a wise decision? 

I'd love to hear your thoughts. 

[Carl Fischer]

@Matt Brown

Can you cash out a Roth? - yes

Will there be a penalty - Maybe, it depends on how long the Roth has been open for and what type of funds are in it (contribution, gains, did you convert from Traditional?)

Should you cash out? - That is completely your decision. I think a Roth is the best type of account. I personally like to buy properties with my self-directed Roth account.

Some things to consider, and possibly talk over with your accountant or tax specialist.

- Are you eligible for "first time home buyer" early distribution from the IRA?

-Do you know anyone who can lend you the down payment? 

-Did you know someone can lend to you or your business with their retirement funds? (Some rules and regulations)

-Did you know you can purchase a property with a self-directed Roth IRA?