Wait time to use Self-directed IRA for REI

[Ken Collins]

Hi,

I recall hearing a statement that if you plan to use a Self-direct IRA for REI in the future, you should open one immediately, even if it is a small amount. The reason given was there is some time frame that must be met from opening the IRA account until you are allowed to begin using the funds for REI.

Is this true and what are the rules?

Thanks,

Ken

[Doreen Chaisson]

I have never heard of this rule, and it's certainly not one we have at our SD IRA custodial company. You can open your SD IRA at any point, just as long as it is funded prior to investment date. You want to be sure your funds are transferred to your new SDIRA form your current IRA/retirement plan custodian in time for an earnest money deposit to be sent out, as you cannot user personal funds for this. If you're currently shopping around for an investment property for your SDIRA, it's better to open & fund sooner rather than later so you can be ready to make a move when you find the right property.