Selling or transferring SDIRA real estate LLC to myself

[Robin Cornacchio]

I'm finally at retirement age and I want to transfer my SDIRA LLC home deed into my personal name. Is this legal and if so, what's the process??

[Brian Eastman]

@Robin Cornacchio

You cannot sell or transfer an asset from your IRA to yourself.

The LLC will need to be distributed at its full value from the IRA as an asset in-kind. The value will be treated as taxable income to you if this is a tax-deferred IRA.

Why you would want to do so is something to question. Speak with your tax advisor to understand the tax implications. There is generally not a benefit to liquidating an entire IRA all at once and paying a high rate of taxes.

If you choose to move forward, work with your plan provider to understand their process for executing in in-kind distribution of the LLC. They will want a certified value for the LLC since this is a taxable event. They will also want to see amended LLC documents reflecting the assignment of interest from the IRA to you personally.