using Inherited IRA for REI

[Pamela Starnes]

The more I read the Self-Directed IRA and solo 401K posts, the more questions I seem to have. Specifically, my questions have to do with investing with an Inherited IRA that I am already having to take required minimum distributions from (based on my stepmothers life expectancy unfortunately, not mine). Several questions at hand are:

1. Would it be more advantageous (or even possible) to transfer the inherited IRA to either a SDIRA vs. a solo 401k? (I know one big advantage mentioned regarding solo 401k is higher contribution limits but this is irrelevant in this case as I am not contributing to the plan.)

2. Can a RMD be taken from another traditional IRA to meet the RMD each year?

3. If the inherited IRA was converted to a SDIRA and used for a buy and hold property, would this require an appraisal to be done at the end of each year to determine the next year's RMD? If so, do you think buy and hold investing would be more or less cumbersome than using the SDIRA for other RE activity, (flipping, lending, etc), which seem to have their own concerns.....Unrelated Business Income Tax, self-employment tax.

I'd appreciate any feedback on your recommendations as to how to best utilize these IRA funds within REI. Thanks in advance!

[Dennis Tierney]

@Pamela Starnes I hate to say this but i think you've received bad advice if you are taking the RMDs based on your stepmom's life expectancy. If you inherited it, it is based on your life expectancy. I know this because I deferred on my father's IRA so my children could get it and their distributions are based on their life expectancy.