Dividing Land to Purchase Half w/ IRA, Half w/ Personal Cash

[David B.]

Hi Everyone. 

We bought a house about a year ago with a SD IRA. It was a more complicated process than I expected, but it worked out fine. We have a nice property and a reliable tenant that is paying the rent on time. I got a lot of great advice here on how to do it. So I am fmiliar with the process.

I have a little leftover money in that IRA, and am eyeing a piece of rural land to eventually use as a weekend recreational getaway. I understand I can't use the land until I distribute it from the IRA. I have enough in that account for about 1/2 the purchase price.

I am trying to figure out how to pay the other half of the purchase price with personal cash, and am assuming the land would have to be divided: 1/2 owned by the IRA and can't be touched by me, and the other 1/2 owned by me free and clear.

Presumably I would need the seller to get it divided in advance of the sale. I have no idea how difficult this would be, and how much effort is involved, and if the seller might not want to bother. Or is it something really simple like going down to the town clerk's office and filing a new title or deed? I don't know much about the whole process.

This is a small-potatoes purchase, not involving a lot of money.

Any suggestions?

Thanks,

David