Self Directed IRA or Withdrawal my money?

[Phillip Scalise]

I have a Roth IRA, and was thinking of taking it out this year to avoid the penalty (CARES act) and incest into rental properties. I plan to then scale up using 10-31 exchanges to defer the capital gains taxes. I know a little about the self directed IRA option but don't like being restricted to retirement age for access. Is there a big difference between just withdrawing and investing outside of the IRA, using 10-31s, verses doing a self directed option? Any help is greatly appreciated.

[Greg Scott]

Roth IRAs are after-tax investments. I have not heard of any penalty for removing funds. The CARES act allows you to avoid the penalties typically associated with a Traditional IRA / 401k. Before you take out any monies, you should confirm details.

Regarding which is better SDIRA or cash, I greatly prefer cash because you can legally use the funds at any time without restrictions.   You can't put food on the table with an SDIRA without penalty until you reach 59 1/2.